Stock Story -
Household products company Reynolds (NASDAQ:REYN) will be announcing earnings results tomorrow morning. Here's what to look for.
Reynolds met analysts' revenue expectations last quarter, reporting revenues of $1.01 billion, down 7.5% year on year. It was a solid quarter for the company, with optimistic earnings guidance for the next quarter.
Is Reynolds a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Reynolds's revenue to decline 6.8% year on year to $815 million, a reversal from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Reynolds has missed Wall Street's revenue estimates four times over the last two years.
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. Clorox (NYSE:CLX)'s revenues decreased 5.3% year on year, missing analysts' expectations by 3%, and Kimberly-Clark (NYSE:KMB) reported flat revenue, topping estimates by 1.2%. Clorox traded down 5.6% following the results while Kimberly-Clark was up 6.9%.
Read the full analysis of Clorox's and Kimberly-Clark's results on StockStory.
Investors in the household products segment have had steady hands going into earnings, with share prices flat over the last month. Reynolds's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $30.9 (compared to the current share price of $28.52).
