What To Expect From Reynolds's (REYN) Q4 Earnings

Household products company Reynolds (NASDAQ:REYN) will be reporting earnings this Wednesday before the bell. Here’s what to look for.

Reynolds beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $931 million, up 2.3% year on year. It was a strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a solid 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, analysts are expecting Reynolds’s revenue to decline 1.5% year on year to $1.01 billion, a reversal from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 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 2.5% on average.

Looking at Reynolds’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Colgate-Palmolive delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 1.7%, and Procter & Gamble reported revenues up 1.5%, in line with consensus estimates. Colgate-Palmolive traded up 7.2% following the results while Procter & Gamble was also up 2.8%.

Read our full analysis of Colgate-Palmolive’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 9.3% on average over the last month. Reynolds is up 2.3% during the same time and is heading into earnings with an average analyst price target of $26.86 (compared to the current share price of $23.09).

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