NASDAQ$REYN
Reynolds Consumer Products Inc · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Reported strong financial results for Q1 2020, exceeding expectations despite COVID-19 challenges, and provided an updated annual outlook for 2020.
Reynolds Consumer Products reported a strong start to the year with net revenues of $730 million and earnings per share of $0.14. The company experienced increased demand due to the COVID-19 pandemic, which drove volume increases. The company is managing the business to ensure continued long term earnings growth for shareholders.
- Net revenues increased to $730 million, up from $665 million in the prior year period.
- Earnings Per Share (EPS) reached $0.14, with an adjusted EPS of $0.30.
- Net income increased to $26 million, and Adjusted EBITDA was $135 million.
- The company increased its guidance on all profit measures and reduced its Net Debt target for fiscal year 2020.
Headline financials
Revenue & EPS history
Reynolds · Revenue · Quarterly
$730M
Revenue by segment
Reynolds · $730M total across 5 segments · Q1 2020
- Reynolds Cooking & Baking$243M+14.1%33.3%
- Hefty Waste & Storage$192M+16.4%26.3%
- Hefty Tableware$178M+8.5%24.4%
- Presto Products$127M+0.0%17.4%
- Unallocated-$10M-150.0%-1.4%
Forward guidance
Reynolds Consumer Products updated its fiscal year 2020 guidance due to increased demand related to the COVID-19 pandemic and anticipated benefit from lower interest rates. The company expects COVID-19 operational-related cost increases to offset the impact of the increased demand resulting in its Adjusted EBITDA forecast for Q2 – Q4 2020 remaining in line with its previous guidance.
Tailwinds
- Net Income to be in the range of $335 million to $355 million
- Earnings Per Share to be in the range of $1.60 to $1.69 per share
- Adjusted EBITDA to be in the range of $695 million to $715 million
- Adjusted Net Income to be in the range of $388 million to $403 million
- Adjusted Earnings Per Share to be in the range of $1.85 to $1.92 per share
Headwinds
- The magnitude and duration of increased demand remains uncertain.
- The greatest challenge it faces as a result of the pandemic is its ability to maintain the level of supply needed to keep up with the increased demand.
- COVID-19 related volume increases in 2020 will make it more challenging to show year over year improvement in Adjusted EBITDA in 2021.
- The current operating environment necessitates additional costs.
- Net Debt to be in the range of $1.9 billion to $2.1 billion
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
-0.7%
Avg return
Earnings day
-0.5%
Avg return
5 days after
-1.1%
Avg return
30 days after
41%
12 / 29 earnings
Positive
+9.6%
Q4 2025
Best reaction
-9.0%
Q2 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.8% | +1.5% | +5.4% | |
| Q4 2025 | +9.6% | +4.5% | +4.1% | |
| Q3 2025 | +5.1% | +3.5% | +5.4% | |
| Q1 2025 | -3.0% | -1.7% | -6.8% | |
| Q4 2024 | -4.2% | -11.5% | -12.1% | |
| Q3 2024 | -8.7% | -8.7% | -6.2% | |
| Q2 2024 | +5.2% | +4.8% | +13.4% | |
| Q1 2024 | +3.0% | +2.1% | -1.6% | |
| Q4 2023 | +2.5% | +2.5% | +4.1% | |
| Q3 2023 | +5.3% | +3.7% | +2.1% | |
| Q2 2023 | +1.5% | +1.8% | -5.6% | |
| Q1 2023 | +6.2% | +3.3% | +1.4% | |
| Q4 2022 | -3.4% | -2.6% | -8.4% | |
| Q3 2022 | -7.6% | -3.1% | +0.5% | |
| Q2 2022 | -3.6% | -3.0% | -5.5% | |
| Q1 2022 | -2.8% | -0.5% | -9.2% | |
| Q4 2021 | +2.0% | +3.6% | +0.9% | |
| Q3 2021 | +2.8% | +3.1% | +4.6% | |
| Q2 2021 | -2.1% | -2.5% | -1.3% | |
| Q1 2021 | +0.1% | +3.1% | -0.7% | |
| Q4 2018 | -0.3% | +0.1% | +2.8% | |
| Q4 2020 | -3.0% | -2.8% | -1.9% | |
| Q3 2019 | -2.3% | -1.6% | -1.4% | |
| Q3 2020 | +0.3% | +3.0% | +3.2% | |
| Q2 2020 | -9.0% | -4.4% | -8.3% | |
| Q2 2019 | -9.0% | -4.4% | -8.3% | |
| Q1 2019 | -1.1% | +1.4% | -2.9% | |
| Q1 2020 | -1.1% | +1.4% | -2.9% | |
| Q4 2019 | -2.0% | -11.3% | +3.2% |
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