NASDAQ$REYN

Reynolds Consumer Products Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net revenues increase of 11% over prior year and increased 2020 full year outlook.

Reynolds Consumer Products reported a strong third quarter in 2020, with net revenues increasing by 11% to $823 million compared to the prior year period. This growth was driven by strong demand across all business segments. Net income increased by $50 million to $113 million, and adjusted EBITDA was $192 million, reflecting increased revenue and lower material and manufacturing costs.

  • Net Revenues of $823 million.
  • Earnings Per Share of $0.54; Adjusted Earnings Per Share of $0.561.
  • Net Income of $113 million; Adjusted Net Income of $117 million.
  • Adjusted EBITDA of $192 million.

Headline financials

Total Revenue

$823M

Previous: $741M+11.1%
EPS (adj)

$0.56

Previous: $0.41+36.6%
Capital Expenditures

-$85M

Previous: $33M-357.6%
Free Cash Flow

$28M

Previous: $35M-20.0%
Net Income

$113M

Previous: $63M+79.4%
Operating Income

$139M

No prior period
Gross Profit

$265M

Previous: $217M+22.1%
Cash & Equivalents

$351M

No prior period
Total Assets

$4.72B

No prior period
Stock-Based Comp

$1M

No prior period

Revenue & EPS history

Reynolds · Revenue · Quarterly

$823M

Q3 2020+11.1%vs Q3 2019
Beat estimate in 8 of 12 quarters(67%)
ActualEstimate

Revenue by segment

Reynolds · $823M total across 5 segments · Q3 2020

  • Reynolds Cooking & Baking
    $285M+11.3%
  • Hefty Waste & Storage
    $209M+13.0%
  • Hefty Tableware
    $192M+10.3%
  • Presto Products
    $136M+5.4%
  • Unallocated
    $1M+133.3%

Forward guidance

The Company expects revenue growth to be mid-single digits on revenue of $835 million in the fourth quarter of 2019. Net Income to be in the range of $111 million to $114 million. Adjusted EBITDA to be in the range of $195 million to $200 million. Revenue to be in the range of $3,240 million to $3,260 million. Net Income to be in the range of $362 million to $365 million. Earnings Per Share to be in the range of $1.77 to $1.78 per share. Adjusted EBITDA to be in the range of $715 million to $720 million. Adjusted Net Income to be in the range of $410 million to $413 million. Adjusted Earnings Per Share to be in the range of $1.95 to $1.97 per share. Net Debt to be approximately $1.9 billion at December 31, 2020

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 Q3 2020

Historical avgQ3 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

Earnings price reactions
QuarterReport dateReaction (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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