Post-Earnings Coverage Greif under the Microscope

Greif beats market expectations on Earnings

LONDON, UK / ACCESSWIRE / June 9, 2016 / ActiveWallSt.com announces its post-earnings coverage on Greif Inc. (NYSE:GEF). The company announced its Q2 FY16 results on Wednesday, June 08, 2016 with revenue coming slightly higher than market expectations, while earnings failed to beat analysts’ estimate. For Q2 FY16, net income attributable to the company came at $31.4 million or $0.53 per diluted share, as compared net income attributable to the company of $20.8 million or $0.35 per diluted share in Q2 FY15. Net income, excluding special items came at $0.47 per share, as compared to $0.53 per share for Q2 FY15, lower than analyst’ consensus estimate of $0.57 per share. Register with us now for your free membership and see our complete coverage on this equity at:

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Greif reported revenue of $839.6 million for Q2 FY16, down from $915.9 million reported during Q2 FY15; however, it came slightly higher than analysts’ revenue estimate of $836.8. The company reported Gross profit of $173.7 million for Q2 FY16 as compared to $181.1 million for Q2 FY15. Gross profit margin improved to 20.7% for Q2 FY16 as compared to 19.8% during the year ago period.

Today, ActiveWallSt.com is promoting its earnings coverage on GEF. Get all of our free coverage by signing up to http://www.activewallst.com/register/.

Greif reported that for its Rigid Industrial Packaging & Services unit revenue declined to $589.6 million from $666.6 million in Q2 FY15. Revenue in the paper Packaging & Services segment increased 4.2% to $167.2 million for Q2 FY16 as compared to $160.4 million in Q2 FY15, while its Flexible Products & Services business reported revenue of $76.2 million as compared with $82.0 million in Q2 FY15.

The leading manufacturer of Industrial shipping container has been progressing steadily with its plan to align resources as per customer requirement and improve return on capital. Greif has also divested its non-core assets which do not align to its business portfolio. The Delaware, Ohio-based company has also taken steps to boost growth. In Q3 FY15, the company completed the modernization of the Riverville Mill while it also added a second corrugator in North Carolina, bringing the company’s capacity to approximately 780,000 tons.

Greif also announced quarterly cash dividends of $0.42 per share for its Class A Common Stock, and $0.63 per share for Class B Common Stock on June 7, 2016. Dividends are payable on July 1, 2016, to stockholders on record as of close of business on June 20, 2016.

For Fiscal Year 2016, Greif expects adjusted earnings to be in the range of 2.20 to $2.46 per share, with the analysts’ consensus estimates earnings to be $2.24 per share for FY16.

Greif’s stock declined 2.02% to close at $36.90 during the last trading session on June 08, 2016, post the earnings release. The company’s shares have gained 19.77% since the beginning of the year as compared to S&P 500 which is up by 3.68%. In the past three months the stock has risen 33.41%.

International Paper Company (NYSE:IP), and Ball Corp. (NYSE:BLL) two of the closest competitor for Greif have not confirmed their Q2 earnings results date yet.

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SOURCE: Active Wall Street

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