Household products company Reynolds (NASDAQ:REYN) will be reporting results this Wednesday morning. Here’s what you need to know.
Reynolds met analysts’ revenue expectations last quarter, reporting revenues of $818 million, down 1.8% year on year. It was a slower quarter for the company, with a miss of analysts’ gross margin estimates and a miss of analysts’ EBITDA estimates.
Is Reynolds a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Reynolds’s revenue to decline 3% year on year to $901.9 million, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
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 has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.6% on average.
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 1.2%, missing analysts’ expectations by 2.3%, and USANA reported revenues up 10.8%, topping estimates by 4.7%. WD-40’s stock price was unchanged after the resultswhile USANA was up 12.4%.
Read our full analysis of WD-40’s results here and USANA’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 3.8% on average over the last month. Reynolds is up 1.5% during the same time and is heading into earnings with an average analyst price target of $25.75 (compared to the current share price of $21.75).
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