Ranpak Holdings (PACK 1.64%), a small company that provides packaging systems and materials to e-commerce companies and more, is often overlooked. But investors were certainly looking its way today. As of 2:20 p.m. ET, Ranpak stock was up a whopping 51% following the release of its financial results.

An exciting day for Ranpak shareholders

Ranpak released financial results for the fourth quarter of 2023 yesterday afternoon. Q4 net revenue was up 14% year over year and up more than Wall Street expected. The company leases its packaging machines, and machine placements were up 1.5%. And higher volume led to higher revenue for its consumable-packaging materials.

Profits also improved for Ranpak. The company had Q4 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of over $24 million, which was its best quarter in 2023. Moreover, its full-year net loss shrank to $27.1 million compared to a net loss of $41.4 million in 2022.

The financial results were enough to motivate a couple of analysts to rethink their assumptions about Ranpak. Both Ghansham Panjabi of Baird and Greg Palm of Craig-Hallum raised their price targets for Ranpak stock today in light of Q4 results, according to The Fly.

Expect more growth in 2024 for Ranpak

For 2024, Ranpak's management expects to grow net revenues by 6% to 12%, which would result in $370 million to $390 million on the top line. And for adjusted EBITDA, management expects to grow by 5% to 16%, which would result in adjusted EBITDA of $80 million to $89 million.

That's a broad range of outcomes for Ranpak in 2024, and it reflects uncertainty on management's part, which is something for investors to be mindful of. Moreover, while Q4 results were respectable, I'm a little surprised to see the stock up as much as it is.

For Ranpak, this could be a case of a small stock popping more than usual because volume is typically low -- a sudden spike in interest can trigger big moves. Therefore, I wouldn't be surprised if shares pulled back in coming days and weeks. But for patient, long-term investors, Rankpak stock could still find upside if it can keep building on its successes in 2023.