Shares of Reynolds Consumer Products (NASDAQ:REYN) fell as much as 10.6% on Wednesday. The maker of Reynolds Wrap aluminum foil, Hefty trash bags, and other familiar household products recovered somewhat to end the day 8.7% below Tuesday's closing price. Investors were not impressed by Reynolds' second-quarter earnings report.
Net revenues rose 6% year over year to $798 million. Adjusted earnings stopped at $0.55 per diluted share. Management didn't provide a comparable metric for the year-ago period, though adjusted earnings before interest, taxes, depreciation, and amortization rose 14% to $193 million. Your average Wall Street analyst expected adjusted earnings near $0.52 per share on sales in the vicinity of $853 million.
Reynolds saw strong sales of in-home products like trash bags and cookware, but lower interest in disposable cups, plates, and plastic tableware. Management is looking forward to a post-pandemic world where large gatherings can happen again.
Looking ahead, Reynolds lifted its full-year revenue and profit guidance to the upper end of management's previous outlook and ahead of Wall Street's current estimates. The current market environment may be uncertain in many ways, but COVID-19 lockdowns have increased the need for food storage products and essential cleaning supplies.