Reynolds Consumer Products Inc. (NASDAQ:REYN) shareholders are probably feeling a little disappointed, since its shares fell 8.7% to US$27.22 in the week after its latest quarterly results. It was a credible result overall, with revenues of US$910m and statutory earnings per share of US$0.41 both in line with analyst estimates, showing that Reynolds Consumer Products is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Reynolds Consumer Products after the latest results.

Check out our latest analysis for Reynolds Consumer Products

Following last week's earnings report, Reynolds Consumer Products' seven analysts are forecasting 2025 revenues to be US$3.69b, approximately in line with the last 12 months. Statutory per share are forecast to be US$1.75, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$3.71b and earnings per share (EPS) of US$1.79 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$31.67, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Reynolds Consumer Products, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$28.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Reynolds Consumer Products is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Reynolds Consumer Products' past performance and to peers in the same industry. We would highlight that Reynolds Consumer Products' revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Reynolds Consumer Products is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Reynolds Consumer Products' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Reynolds Consumer Products. Long-term earnings power is much more important than next year's profits. We have forecasts for Reynolds Consumer Products going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Reynolds Consumer Products .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.