Reynolds Earned 24 Cents per Share

This morning, Reynolds Consumer Products (REYN) reported Q3 earnings of 24 cents per share. That was one penny more than Wall Street had been expecting.

Revenues were up 7% to $967 million. Like so many other companies, Reynolds sold less stuff but charged more for it. A key to a high-quality company is the ability to pass along price increases.

“We closed the gap between pricing and cost increases this quarter while also building share and delivering earnings in line with our expectations,” said Lance Mitchell, President and Chief Executive Officer. “Household foil trends also improved as we attained key retail price points, and Reynolds and Hefty gained share in multiple categories including household foil, waste bags and disposable tableware. The economic environment remains dynamic, inflationary pressures continue and price elasticity continues to be uncertain. However, our cumulative pricing actions, easing commodity costs and accelerating Reyvolution cost savings position us for substantial margin expansion in the fourth quarter and recovery of pre-pandemic profitability in 2023.”

For Q4, Reynolds expects revenue growth of 9% to $1.021 billion and adjusted EPS between 54 and 60 cents per share.

That would bring the full-year results to revenues of $3.556 billion, an 8% increase, and earnings between 1.30 and $1.36 per share.

The stock fell 7.3% in today’s trading.

Posted by on November 8th, 2022 at 10:27 am


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