Overview
U.S. household essentials supplier's Q1 revenue rose 7%, beating analyst expectations
Q1 adjusted EBITDA beat analyst expectations, driven by higher retail volumes and efficiency gains
Adjusted EPS for Q1 grew 22% to $0.28, with company reiterating full-year outlook
Outlook
Company expects 2026 net revenues to range from -3% to +1% versus 2025
Reynolds sees 2026 EPS and adjusted EPS at $1.57 to $1.63
Company expects Q2 2026 net revenues between -2% and +1% versus Q2 2025
Result Drivers
RETAIL VOLUME GROWTH - Higher retail volumes, especially in Reynolds Cooking & Kitchen Essentials contributed to revenue and profit growth
PRICING ACTIONS - Price increases, particularly in Reynolds Cooking & Kitchen Essentials, helped offset commodity cost increases
OPERATIONAL EFFICIENCIES - Manufacturing and supply chain efficiency gains supported improved profitability
Company press release: ID:nBw79KXcma
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$877 mln
$818.99 mln (5 Analysts)
Q1 EPS
$0.28
Q1 Net Income
$59 mln
Q1 Adjusted EBITDA
Beat
$131 mln
$121.47 mln (6 Analysts)
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the household products peer group is "buy."
Wall Street's median 12-month price target for Reynolds Consumer Products Inc is $24.00, about 12.7% above its May 5 closing price of $21.29
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)