Reynolds Consumer Products (NASDAQ:REYN) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Reynolds Consumer Products beat quarterly estimates: EPS was $0.42 versus the $0.40 consensus, while revenue reached $944 million, up 0.6% year over year and above expectations.
• The company raised its full-year revenue growth outlook to 1%–3% but maintained adjusted EBITDA guidance of $660 million–$675 million and EPS guidance of $1.57–$1.63.
• Profitability faces pressure in the second half: Commodity headwinds are now estimated at about $400 million, while pricing actions, promotional activity and demand elasticity are expected to weigh on third-quarter EBITDA.

Reynolds Consumer Products (NASDAQ:REYN - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.02, FiscalAI reports. Reynolds Consumer Products had a net margin of 8.70% and a return on equity of 16.05%. The company had revenue of $944.00 million for the quarter, compared to analysts' expectations of $935.46 million. During the same quarter in the previous year, the company earned $0.39 earnings per share. Reynolds Consumer Products's quarterly revenue was up .6% on a year-over-year basis. Reynolds Consumer Products updated its Q3 2026 guidance to 0.370-0.390 EPS and its FY 2026 guidance to 1.570-1.630 EPS.

Here are the key takeaways from Reynolds Consumer Products' conference call:

• First-half performance strengthened: Adjusted EBITDA rose 8% to $302 million, adjusted EPS increased 7% in Q2 to $0.42, gross profit expanded by $38 million, and operating cash flow reached $173 million.
• The company raised its full-year revenue outlook to 1%–3% growth, citing higher pricing and retail volume outperformance, while maintaining adjusted EBITDA guidance of $660 million–$675 million and adjusted EPS guidance of $1.57–$1.63.
• Hefty Waste & Clean-Up and Storage & Organization posted distribution gains, while branded waste bags delivered approximately 2% volume and sales growth; Hefty Ultra Strong also ranked among Amazon’s top five products during Prime Day.
• Annualized commodity headwinds are now estimated at approximately $400 million, double the prior estimate, and management expects July pricing actions to pressure second-half margin rates and create demand elasticity.
• Third-quarter adjusted EBITDA is projected at $160 million–$165 million, below the $168 million reported a year earlier, reflecting ongoing macroeconomic uncertainty, promotional intensity, and the effects of further pricing.

Reynolds Consumer Products Stock Up 0.4%

Shares of Reynolds Consumer Products stock traded up $0.09 on Wednesday, reaching $25.90. The company's stock had a trading volume of 564,801 shares, compared to its average volume of 1,117,287. Reynolds Consumer Products has a 52 week low of $20.44 and a 52 week high of $27.32. The firm's fifty day simple moving average is $24.44 and its two-hundred day simple moving average is $23.14. The company has a quick ratio of 0.76, a current ratio of 1.79 and a debt-to-equity ratio of 0.68. The company has a market capitalization of $5.46 billion, a price-to-earnings ratio of 16.51 and a beta of 0.54.

Reynolds Consumer Products Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Shareholders of record on Monday, August 17th will be issued a $0.23 dividend. The ex-dividend date of this dividend is Monday, August 17th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.6%. Reynolds Consumer Products's dividend payout ratio (DPR) is presently 58.60%.

Institutional Investors Weigh In On Reynolds Consumer Products

Several institutional investors have recently modified their holdings of the business. Royal Bank of Canada increased its holdings in Reynolds Consumer Products by 74.6% in the 4th quarter. Royal Bank of Canada now owns 2,163 shares of the company's stock worth $50,000 after buying an additional 924 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of Reynolds Consumer Products by 32.5% during the 4th quarter. PNC Financial Services Group Inc. now owns 2,873 shares of the company's stock valued at $66,000 after acquiring an additional 704 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Reynolds Consumer Products during the 4th quarter valued at about $76,000. Tower Research Capital LLC TRC grew its stake in shares of Reynolds Consumer Products by 764.6% in the second quarter. Tower Research Capital LLC TRC now owns 3,666 shares of the company's stock worth $79,000 after acquiring an additional 3,242 shares during the period. Finally, Wells Fargo & Company MN grew its stake in shares of Reynolds Consumer Products by 34.4% in the fourth quarter. Wells Fargo & Company MN now owns 3,466 shares of the company's stock worth $79,000 after acquiring an additional 887 shares during the period. 26.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

REYN has been the topic of several research reports. Weiss Ratings raised Reynolds Consumer Products from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, June 29th. Zacks Research raised Reynolds Consumer Products from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Barclays raised their target price on Reynolds Consumer Products from $24.00 to $25.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 21st. UBS Group lifted their price target on Reynolds Consumer Products from $23.00 to $27.00 and gave the company a "neutral" rating in a research report on Thursday, July 16th. Finally, JPMorgan Chase & Co. upped their price target on Reynolds Consumer Products from $23.00 to $27.00 and gave the stock a "neutral" rating in a research note on Thursday, July 16th. Seven investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $25.40.

Reynolds Consumer Products Company Profile

Reynolds Consumer Products, Inc NASDAQ: REYN is a leading North American manufacturer and marketer of household consumer products. The company specializes in food storage and cooking solutions, including aluminum foil, plastic wrap, food storage containers and disposable tableware. Its core portfolio features well-known brands such as Reynolds Wrap aluminum foil, Hefty storage containers and trash bags, and Fastfold paper plates.

The company operates through a network of manufacturing and distribution facilities across North America, Latin America, Europe and the Asia Pacific region.

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