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Greif (GEF) to Report Q1 Earnings: What's in the Cards?

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Greif, Inc. (GEF - Free Report) is scheduled to release first-quarter fiscal 2022  financial numbers, after the closing bell on Mar 2.

Q1 Estimates

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.20 per share, suggesting year-over-year growth of 96.7%.

The Zacks Consensus Estimate for fiscal first-quarter total revenues is pinned at $1.50 billion, calling for an increase of 30.4% from the year-ago quarter’s levels.

Q4 Results

In the last reported quarter, the company’s earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. Greif has a trailing four-quarter earnings surprise of 16.8%, on average.

Key Factors

Greif’s fiscal first-quarter performance is likely to have benefited from its focus on operational execution and restructuring activities, which includes optimizing and integrating operations in the Paper Packaging & Services segment, rationalizing operations and closing underperforming assets in the Global Industrial Packaging segment. Price hikes related to robust demand and combat-inflated costs are likely to have driven the bottom line in the to-be-reported quarter.

The Global Industrial Packaging segment is gaining from strong key end markets and solid volume growth for chemicals, specialty chemicals and lubricants coupled with robust demand in global rigid Intermediate Bulk Container (IBC) and large plastic drums. These factors are likely to have contributed to the segment’s results during the fiscal fourth quarter.

The company’s Paper Packaging segment is likely to have benefited from strong volumes in converting operations and higher selling prices due to increases in published containerboard and boxboard prices. Improved demand for textiles and protective packaging has been driving the segment’s tube and core volumes. Apart from this, the Caraustar acquisition and various new capital growth projects are likely to have contributed to the segment’s results during the quarter under review.

The pandemic-related crisis and concern over the new Omicron variant will continue to fuel packaging demand for food, pharmaceutical and household goods industries until the situation stabilizes. These are anticipated to have contributed to the segment’s performance during the quarter to be reported.

Higher Old Corrugated Container (OCC) costs and escalating costs for raw materials used in the papermaking process might have marred the company’s margin during the fiscal first quarter. Labor shortages and supply chain disruption are headwinds coupled with increasing energy, chemical and transportation costs.

Greif, Inc. Price and EPS Surprise

Greif, Inc. Price and EPS Surprise

Greif, Inc. price-eps-surprise | Greif, Inc. Quote

What Our Zacks Model Indicates

Our proven model doesn’t conclusively predict an earnings beat for Greif this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Greif is 0.00%.

Zacks Rank: Greif currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Greif’s shares have gained 18.6% in the past year compared with the industry’s growth of 13.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks Worth a Look

Here are some stocks worth considering as these have the right combination of elements to post an earnings beat in the upcoming releases.

The Cooper Companies, Inc. (COO - Free Report) currently has an Earnings ESP of +0.12% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2022 earnings have moved down in the past 30 days and is currently pegged at $3.08 per share. This suggests a year-over-year decline of 2.84%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $737 million, indicating an increase of 8.2% from the prior-year quarter’s levels. Cooper Companies has a trailing four-quarter earnings surprise of 5.8%, on average.

Keysight Technologies, Inc. (KEYS - Free Report) currently has an Earnings ESP of +1.83% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings is currently pegged at $1.64 per share, suggesting 13.9% growth from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $1.30 billion, highlighting year-over-year growth of 6.2%. Keysight has a trailing four-quarter earnings surprise of 7.45%, on average.

HEICO Corporation (HEI - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings have undergone downward revisions in the past 30 days and is currently pegged at 62 cents per share. This suggests year-over-year growth of 21.5%.

The Zacks Consensus Estimate for HEICO’s quarterly revenues is pegged at $525 million, indicating year-over-year growth of 12.6%. HEI has a trailing four-quarter earnings surprise of 7.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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