By Christiana Sciaudone
Investing.com -- Reynolds Consumer Products (NASDAQ:REYN) fell 10% as it struggles to keep up with demand and quarterly sales fell short of the estimate.
The greatest challenge faced by Reynolds is its "ability to maintain the level of supply needed to keep up with the increased demand," the company said in a statement. "While the company has benefited from the increased demand driven by the pandemic, it is facing staffing challenges as it adds capacity throughout its facilities and headwinds from commodity prices that have begun increasing in recent months."
Sales of $822 million rose from $791 million a year earlier, but could not match the average analyst estimate of $853 million, according to data compiled by Investing.com.
Fewer social gatherings around the holidays will continue to hurt results, with Hefty Tableware already having seen a 10% decrease in sales in the second quarter.
Reynolds maintained its 2020 guidance, and said it expects full year results to be at the upper end of previously provided ranges, including net income of $335 million to $355 million, earnings per share: $1.60 to $1.69, and adjusted earnings before interest, taxes, depreciation and amortization of $695 million to $715 million.
Analysts mostly like the stock, which has four buy ratings, two holds and no sells.