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Spotting Winners: Reynolds (NASDAQ:REYN) And Household Products Stocks In Q4

REYN Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at household products stocks, starting with Reynolds (NASDAQ: REYN).

Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.

The 10 household products stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

While some household products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

Weakest Q4: Reynolds (NASDAQ: REYN)

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Reynolds reported revenues of $1.02 billion, up 1.4% year on year. This print exceeded analysts’ expectations by 5.2%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ organic revenue estimates but a significant miss of analysts’ gross margin estimates.

“Our retail volume accelerated in the fourth quarter, and we have the team, business model and resources to drive strong growth, further margin expansion and consistently attractive shareholder returns,” said Scott Huckins, President and Chief Executive Officer.

Reynolds Total Revenue

Reynolds achieved the biggest analyst estimates beat of the whole group. The stock is down 6.8% since reporting and currently trades at $24.15.

Is now the time to buy Reynolds? Access our full analysis of the earnings results here, it’s free.

Best Q4: Clorox (NYSE: CLX)

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Clorox reported revenues of $1.69 billion, down 15.3% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.

Clorox Total Revenue

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.8% since reporting. It currently trades at $148.99.

Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.

Central Garden & Pet (NASDAQ: CENT)

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ: CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Central Garden & Pet reported revenues of $656.4 million, up 3.5% year on year, exceeding analysts’ expectations by 4.4%. Its results were still good as it also locked in an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 2.8% since the results and currently trades at $38.11.

Read our full analysis of Central Garden & Pet’s results here.

Procter & Gamble (NYSE: PG)

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Procter & Gamble reported revenues of $21.88 billion, up 2.1% year on year. This number topped analysts’ expectations by 1.3%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but gross margin in line with analysts’ estimates.

The stock is up 1.2% since reporting and currently trades at $163.61.

Read our full, actionable report on Procter & Gamble here, it’s free.

WD-40 (NASDAQ: WDFC)

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $153.5 million, up 9.3% year on year. This print beat analysts’ expectations by 4.1%. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.

WD-40 delivered the fastest revenue growth among its peers. The stock is down 4.2% since reporting and currently trades at $230.72.

Read our full, actionable report on WD-40 here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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