NASDAQ$REYN
Reynolds Consumer Products Inc · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Reported third quarter 2021 financial results with strong demand and pricing actions to offset cost increases.
Reynolds Consumer Products reported a 10% increase in net revenues to $905 million for the third quarter of 2021, driven by pricing and strong demand; however, net income decreased by 42% to $66 million, and Adjusted EBITDA decreased by 31% to $132 million due to rising material, labor, and logistics costs.
- Net revenues increased by 10% compared to the prior year, reaching $905 million.
- Net income was $66 million, a 42% decrease compared to the previous year.
- Adjusted EBITDA amounted to $132 million, reflecting a 31% decrease year-over-year.
- Earnings per share (EPS) stood at $0.31, while adjusted EPS was $0.33.
Headline financials
Revenue & EPS history
Reynolds · Revenue · Quarterly
$905M
Revenue by segment
Reynolds · $905M total across 5 segments · Q3 2021
- Reynolds Cooking & Baking$328M+15.1%36.2%
- Hefty Waste & Storage$237M+13.4%26.2%
- Hefty Tableware$196M+2.1%21.7%
- Presto Products$151M+11.0%16.7%
- Unallocated-$7M-800.0%-0.8%
Forward guidance
The Company is expecting revenue growth in the mid to high teens for its fourth quarter, driven primarily by recent price increases and anticipated volume above Q4 2020 levels. The Company expects sequential margin improvement in the fourth quarter but continued short-term earnings pressure, primarily driven by increases in material, labor and logistics costs in excess of price increases implemented during the third quarter.
Tailwinds
- Revenue growth in the mid to high teens for Q4.
- Driven primarily by recent price increases.
- Anticipated volume above Q4 2020 levels.
- Sequential margin improvement in the fourth quarter
- Continued effectiveness mitigating staffing, third-party manufacturing and logistics related disruptions.
Headwinds
- Continued short-term earnings pressure.
- Driven primarily by increases in material.
- Driven primarily by increases labor and logistics costs in excess of price increases implemented during the third quarter.
- Rates for resin have not eased since July as forecasted, and aluminum rates are higher versus July levels.
- Labor and logistics costs have also exceeded forecasts since July.
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 2021
-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% |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro