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Unpacking Q1 Earnings: Reynolds (NASDAQ:REYN) In The Context Of Other Household Products Stocks


Kayode Omotosho /
2024/07/08 3:50 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how household products stocks fared in Q1, starting with Reynolds (NASDAQ:REYN).

Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.

The 10 household products stocks we track reported a solid Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the household products stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.9% on average since the previous earnings results.

Reynolds (NASDAQ:REYN)

Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.

Reynolds reported revenues of $833 million, down 4.7% year on year, topping analysts' expectations by 2.2%. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and an impressive beat of analysts' organic revenue growth estimates.

Reynolds Total Revenue

Reynolds pulled off the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. The stock is down 3.2% since the results and currently trades at $27.5.

Is now the time to buy Reynolds? Access our full analysis of the earnings results here, it's free.

Best Q1: Spectrum Brands (NYSE:SPB)

A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Spectrum Brands reported revenues of $718.5 million, down 1.5% year on year, outperforming analysts' expectations by 1.5%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings and organic revenue growth estimates.

Spectrum Brands Total Revenue

The stock is down 0.7% since the results and currently trades at $83.93.

Is now the time to buy Spectrum Brands? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Energizer (NYSE:ENR)

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.

Energizer reported revenues of $663.3 million, down 3% year on year, falling short of analysts' expectations by 0.1%. It was a weaker quarter for the company, with a miss of analysts' organic revenue growth estimates.

The stock is down 0.4% since the results and currently trades at $29.34.

Read our full analysis of Energizer's results here.

Kimberly-Clark (NYSE:KMB)

Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE:KMB) is now a household products powerhouse known for personal care and tissue products.

Kimberly-Clark reported revenues of $5.15 billion, down 0.9% year on year, surpassing analysts' expectations by 1.2%. It was a very good quarter for the company, with an impressive beat of analysts' organic revenue growth estimates.

The stock is up 7.3% since the results and currently trades at $138.29.

Read our full, actionable report on Kimberly-Clark here, it's free.

Clorox (NYSE:CLX)

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Clorox reported revenues of $1.81 billion, down 5.3% year on year, falling short of analysts' expectations by 3%. It was a mixed quarter for the company, with a miss of analysts' organic revenue growth estimates.

Clorox had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 9.9% since the results and currently trades at $133.22.

Read our full, actionable report on Clorox here, it's free.

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