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Reynolds Consumer Products (NASDAQ:REYN) could not wrap up a gain on Tuesday as full year earnings projections came in weaker than anticipated.
For the third quarter, the company posted a narrow beat on the bottom line while missing revenue expectations of $10.73M in notching $967M. Sales volume declines across foil, waste bag, and was largely offset by pricing actions, according to management.
“We closed the gap between pricing and cost increases this quarter while also building share and delivering earnings in line with our expectations,” CEO Lance Mitchell said. “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.”
He added that while inflationary pressures remain, “cumulative pricing actions, easing commodity costs, and accelerating Reyvolution cost savings” are expected to promote continued profit recovery. Nonetheless, the profits for the full-year fell short of analyst expectations.
The company now expects revenue to grow approximately 8%, trimmed from an 8% to 11% prior forecast, alongside full-year adjusted EPS of $1.30 to $1.36, down from $1.32 to $1.43. For the fourth quarter, a forecast of adjusted EPS in the range of $0.54 to $0.60 per share also came up short of the consensus set at $0.61.
Shares fell 5.96% shortly after Tuesday’s market open.
Read more on the details of the results.
