Household products company Reynolds (NASDAQ:REYN) will be announcing earnings results tomorrow before the bell. Here's what to look for.
Reynolds beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $833 million, down 4.7% year on year. 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.
Is Reynolds a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Reynolds's revenue to decline 5% year on year to $892.7 million, a reversal from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 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 three times over the last two years.
Looking at Reynolds's peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Clorox's revenues decreased 5.7% year on year, missing analysts' expectations by 2.4%, and Colgate-Palmolive reported revenues up 4.9%, topping estimates by 1.1%. Clorox traded up 7.5% following the results while Colgate-Palmolive was also up 4.5%.
Read our full analysis of Clorox's results here and Colgate-Palmolive's results here.
Investors in the household products segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Reynolds is up 2.9% during the same time and is heading into earnings with an average analyst price target of $30.6 (compared to the current share price of $28.04).
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