REYN Stock Forecast & Price Target

Reynolds Consumer Products Inc. demonstrated solid growth in its financial results, with the Reynolds Cooking & Baking segment achieving 4.8% sales growth in Q3, supported by a notable increase in aluminum foil brand sales of 6.7%. Additionally, the firm reported a year-over-year increase in earnings per share (EPS) by $0.01, driven by lower interest costs and effective tax strategies. The Hefty Waste & Storage segment also saw a substantial sales increase of 5.1%, highlighting the company's ability to capture market share and outperform projections amid competitive pressures.

Reynolds Consumer Products Inc. is projecting Q4 revenues to decline between 1% and 5%, falling short of consensus expectations which estimate a decline of only 0.8%. Additionally, the Hefty Tableware segment has experienced a significant downturn, with sales plunging by 9.9% in Q3, further compounded by a 7.2% decline in proxy sales alongside volume reductions of 15.1%. The firm also faces ongoing pressures from rising raw material costs, as fluctuations in commodities such as aluminum and resin substantially impact 62% of the cost of goods sold, creating additional financial headwinds for the company.