Reynold’s stock up premarket after earnings beat estimates

Reynolds Consumer Products Inc.’s stock
REYN,
+3.49%
jumped 3.5% premarket Wednesday after the maker of household products beat estimates for the second quarter. Lake Forest, Ill.-based Reynolds posted net income of $66 million, or 32 cents a share, for the quarter, up from $52 million, or 25 cents a share, in the year-earlier period. Adjusted per-share earnings were also 32 cents, ahead of the 28 cent FactSet consensus. Revenue rose 3% to $940 million to beat the $937 million FactSet consensus. Revenue was driven by higher pricing and unchanged volume compared to the prior year. CEO Lance Mitchell said the company has restored profitability in each of its four businesses, of cooking and baking, hefty waste and storage, hefty tableware and Presto food bag products. “We are forecasting strong earnings growth for the remainder of the year and have resumed paying down debt enabled by improved earnings, strong working capital management and continued capital investment discipline,” Mitchell said in a statement. The company raised the low end of its EPS guidance for the full year to a range of $1.34 to $1.41 from prior guidance of $1.30 to $1.41. The stock has fallen 7% in the year to date, while the S&P 500
SPX,
-0.28%
has gained 17%.