Reynolds Consumer Products Inc. (REYN) reported lower earnings for the first quarter of fiscal 2023. The earnings are in line with the Street estimates. However, revenue climbed by 3% underpinned by price increases.
The company cited increases in material and manufacturing costs in the Reynolds Cooking & Baking business, a rise in personnel costs, professional fees and advertising costs, as well as higher interest costs for the lower profit.
Earnings decreased to $17 million, or $0.08 earnings per share from $52 million, or $0.25 earnings per share for the same period of last year.
Adjusted earnings per share decreased to $0.08 per share from $0.26 per share for the same period of previous year.
9 analysts polled by Thomson-Reuters expected the company to report earnings of $0.08 per share for the quarter. Consensus estimates typically exclude one-time items.
Revenue, however, increased to $852 million from $818 million for the same period of last year.
The company has declared a quarterly dividend of $0.23 per share. The dividend is payable on May 31 to shareholders of record on May 17.
Looking forward, for the second quarter, the company initiated its guidance. Earnings are expected to be between $57million – $64 million or $0.27 to $0.30 earnings per share. The Street estimate is $0.25 earnings per share.
The adjusted EBITDA is seen between $135 – $145 million and the company expects the net revenues to show a flat to 2% growth. The Street estimate for revenue is $932.69 million.
Looking forward to the full fiscal of 2023, the company reiterated its outlook. It expects the earnings to be in the range of $274 million – $296 million or $1.30 – $1.41 earnings per share. The Street estimate is $1.34 per share.
The adjusted EBITDA is still seen between $605 million – $635 million. The company expects the net revenues to show a flat to +/- 1% growth. The Street estimate for revenue is $3.83 billion.
Tuesday, Reynolds shares closed at $27.37 on the Nasdaq.
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