Household products company Reynolds (NASDAQ: REYN) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Reynolds beat analysts’ revenue expectations last quarter, reporting revenues of $877 million, up 7.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
Is Reynolds a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Reynolds’s revenue to be flat year on year, slowing from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Reynolds rarely misses Wall Street’s revenue estimates.
Looking at Reynolds’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 24.3%, beating analysts’ expectations by 12.9%, and Vita Coco reported revenues up 28.1%, topping estimates by 3%. WD-40 traded up 10.6% following the results while Vita Coco was down 11.4%.
Read our full analysis of WD-40’s results here and Vita Coco’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 2.7% on average over the last month. Reynolds is down 6% during the same time and is heading into earnings with an average analyst price target of $26.43 (compared to the current share price of $25.50).
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