Household products company Reynolds (NASDAQ: REYN) will be announcing earnings results this Wednesday before the bell. Here’s what to expect.
Reynolds beat analysts’ revenue expectations last quarter, reporting revenues of $1.03 billion, up 1.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ organic revenue estimates but a miss of analysts’ gross margin 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, improving from the 1.8% decrease it recorded 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 to stay the course heading into earnings. Reynolds rarely misses Wall Street’s revenue estimates.
Looking at Reynolds’s peers in the household products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Procter & Gamble delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 3.6%, and WD-40 reported revenues up 10.7%, topping estimates by 4.7%. Procter & Gamble traded up 1.8% following the results while WD-40 was down 4%.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
Investors in the household products segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Reynolds is down 2.6% during the same time and is heading into earnings with an average analyst price target of $25.14 (compared to the current share price of $20.76).
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