Household products company Reynolds (NASDAQ:REYN) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Reynolds beat analysts’ revenue expectations last quarter, reporting revenues of $944 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat 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, slowing from the 2.3% increase 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 will 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 Q3 results, giving us a hint as to what we can expect. Clorox delivered year-on-year revenue growth of 33.3%, beating analysts’ expectations by 1.5%, and Procter & Gamble reported revenues up 4%, topping estimates by 2%. Procter & Gamble traded up 2.7% following the results.
Read our full analysis of Clorox’s results here and Procter & Gamble’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 8.3% on average over the last month. Reynolds is up 10.8% during the same time and is heading into earnings with an average analyst price target of $26.29 (compared to the current share price of $24.64).
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