Canaccord Genuity Reaffirms Hold Rating on Reynolds Consumer Products (REYN)
Analyst Recommendation: Canaccord Genuity has maintained a "Hold" recommendation for Reynolds Consumer Products, with an average one-year price target of $27.10/share, indicating a potential upside of 6.16% from the current price of $25.53/share.
Revenue and Earnings Projections: The projected annual revenue for Reynolds Consumer Products is $4,058 million, reflecting a 9.47% increase, with a non-GAAP EPS forecast of 1.93.
Institutional Ownership Trends: There has been a 5.30% increase in the number of funds reporting positions in Reynolds Consumer Products, with total shares owned by institutions rising by 6.20% over the last three months.
Shareholder Activity: Notable changes in shareholder positions include significant increases by Fuller & Thaler Asset Management and UBVLX, while Wells Fargo Special Mid Cap Value Fund and T. Rowe Price Mid-Cap Growth Fund have reduced their holdings.
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- Solid Revenue Growth: Q4 2025 net revenues reached $1.03 billion, a 1% increase from $1.02 billion in Q4 2024, demonstrating resilience in market share gains and brand performance despite commodity and tariff pressures.
- Product Innovation Expansion: The company introduced new Hefty waste bags, Reynolds KITCHENS cooking bags, and ECOSAVE compostable cutlery, enhancing product line diversity aimed at meeting consumer demands and boosting market competitiveness through innovation.
- Cautious 2026 Outlook: Net revenues for 2026 are projected to decline by 3% to increase by 1%, and while management remains optimistic about stable adjusted EBITDA, they must navigate intensified competition and rising costs.
- Strategic Realignment Plans: The company plans to realign the Hefty and Presto category organizations in Q1 2026 to improve efficiency and focus on innovation, aiming to better capture growth opportunities, although no substantial personnel changes are anticipated.
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
- Quarterly Dividend Announcement: Reynolds Consumer Products declares a quarterly dividend of $0.23 per share, consistent with previous distributions, indicating the company's stable cash flow and shareholder return strategy.
- Yield Performance: The forward yield of 4.22% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Shareholder Record Dates: The dividend will be payable on February 27, with a record date of February 13 and an ex-dividend date also on February 13, ensuring shareholders receive their returns promptly.
- Financial Performance Overview: Reynolds Consumer Products reported a non-GAAP EPS of $0.59, in line with expectations, while revenue of $1.03 billion exceeded market forecasts by $20 million, showcasing the company's strong performance in revenue growth.
- EPS Meets Expectations: Reynolds Consumer Products reported a Q4 non-GAAP EPS of $0.59, aligning with market expectations, indicating stability in the company's profitability.
- Slight Revenue Growth: The company achieved $1.03 billion in revenue for Q4, reflecting a 1.0% year-over-year increase and exceeding market expectations by $20 million, showcasing resilience in a competitive market environment.
- Retail Revenue Decline: Retail net revenues were $964 million, down from $975 million in Q4 2024, with retail volumes decreasing by 2%, yet outperforming category performance by 2 points, demonstrating relative strength in the market.
- Adjusted Net Income Increase: Adjusted net income rose to $125 million compared to $121 million in Q4 2024, indicating progress in cost control and operational efficiency within the company.
- Revenue Growth: Q4 2025 net revenues reached $1.034 billion, up 1.3% from $1.021 billion in Q4 2024, demonstrating the company's ability to maintain stable revenue growth despite challenging macro conditions, which enhances market confidence.
- Adjusted Net Income: Adjusted net income was $125 million, a 3.3% increase from $121 million in Q4 2024, reflecting effective execution of cost-saving and revenue growth strategic investments, thereby improving profitability.
- Segment Performance: Reynolds Cooking & Baking segment saw net revenues increase by $34 million to $398 million, primarily driven by growth in non-retail revenues and pricing adjustments, indicating the company's strong market share retention amidst competition.
- Future Outlook: Full-year 2026 net revenues are expected to decline by 3% to increase by 1% compared to 2025, with net income and adjusted net income projected between $331 million and $343 million, reflecting a cautiously optimistic outlook for future market conditions.








