Reynolds Consumer Products Inc. (NASDAQ:REYN) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.2% to hit US$833m. Statutory earnings per share (EPS) came in at US$0.23, some 2.2% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Reynolds Consumer Products

Taking into account the latest results, the six analysts covering Reynolds Consumer Products provided consensus estimates of US$3.61b revenue in 2024, which would reflect a noticeable 2.8% decline over the past 12 months. Per-share earnings are expected to increase 6.3% to US$1.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.60b and earnings per share (EPS) of US$1.62 in 2024. So the consensus seems to have become somewhat more optimistic on Reynolds Consumer Products' earnings potential following these results.

The consensus price target was unchanged at US$31.13, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. 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$29.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.8% by the end of 2024. This indicates a significant reduction from annual growth of 4.7% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Reynolds Consumer Products is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Reynolds Consumer Products' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Reynolds Consumer Products going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Reynolds Consumer Products that you need to take into consideration.

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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.