We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The provider of industrial packaging products and services, Greif, Inc. (GEF - Free Report) reported adjusted earnings of 65 cents per share in fourth-quarter fiscal 2016 (ended Oct 31, 2016), which declined 14% year over year due to changes in income tax expense. Also, earnings fell short of the Zacks Consensus Estimate of 68 cents.
Including one-time items, the company posted earnings of 14 cents per share, a 33% plunge from 21 cents per share recorded in the year-ago quarter.
Revenues edged down 0.9% year over year to $868 million from $869 million in the prior-year quarter, however beat the Zacks Consensus Estimate of $846 million. Adjusting for the effect of and currency translation, sales increased 5.3% on a year-over-year basis.
Cost of sales decreased 2% year over year to $684 million. Gross profit grew 9% year over year to $183 million. Gross margin expanded 180 basis points to 21.1% in the quarter. Selling, general and administrative (SG&A) expenses inched up 1% year over year to $96.5 million. Adjusted operating profit increased 21% year over year to $87 million. Adjusted operating margin improved 170 basis points to 10% in the quarter.
Segmental Performance
Rigid Industrial Packaging & Services: This segment reported sales of $603 million, up 0.3% from $601 million in the year-ago quarter. Excluding the effect of divestitures and currency translation, net sales was up 7% due to the impact of strategic volume and pricing decisions. Adjusted operating income surged 44% to $60.3 million from $41.8 million in the year-ago quarter.
Paper Packaging: Sales were up 5% year over year to $189 million, on the back of increases in volumes, offset by reductions in the published containerboard index prices which occurred during 2016. The segment reported an operating profit of $24.7 million, down 24% from the year-ago quarter, hit by higher input costs, primarily old corrugated container costs, as well as reductions in published containerboard index prices.
Flexible Products & Services: Sales from this segment went down 6% year over year to $69 million. Excluding the impact of divestitures, sales decreased 3% mainly due to the negative impact of currency translation. The segment reported adjusted operating profit of $0.1 million versus operating loss of $5.3 million in the prior-year quarter. The improvement was driven by lower fixed costs and the impact of strategic volume and pricing decisions throughout 2016.
Land Management: The segment’s sales plummeted 54% year over year to $6.6 million due to the sale of 5,200 acres of development properties in Canada during the prior-year quarter. Adjusted operating income improved 43% year over year to $2 million.
Financial Position
At the end of fiscal 2016, Greif had cash and cash equivalents of $103.7 million compared with $106.2 million as of fiscal 2015 end. The company reported cash from operations of $301 million in fiscal 2016, compared with $206 million in the prior fiscal. Long-term debt was $974.6 million as of fiscal 2016 end, compared with $1,116 million as of fiscal 2015 end.
On Dec 6, 2016, Greif declared a quarterly dividend of 42 cents per share of Class A Common Stock and 62 cents per share of Class B Common Stock. Dividends are payable on Jan 1, 2017, to stockholders of record at the close of business as of Dec 19, 2016.
Fiscal 2016 Performance
For fiscal 2016, Greif reported adjusted earnings of $2.44 per share, up 12% from the prior fiscal. Earnings, however, fell short of the Zacks Consensus Estimate of $2.46. Including one-time items, the company reported earnings of $1.28 per share, up 4% year over year. Revenues dipped 8% year over year to $3.32 billion from $3.62 billion in the year-ago quarter, but came ahead of the Zacks Consensus Estimate of $3.30 billion.
Greif projects fiscal 2017 earnings per share to range between $2.78 and $3.08. Compared to the adjusted earnings per share of $2.44 in fiscal 2016, the guidance range depicts year-over-year growth in the range of 14–26%.
Delaware, OH-based Greif makes and sells industrial packaging products, bulk containers, and containerboard and corrugated products worldwide. The company provides services such as blending, filling, packaging and recycling of industrial containers for a wide range of industries. Greif also manages timber properties in North America and offers land management consulting services.
Zacks Rank
Greif currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector include Alarm.Com Holdings, Inc. (ALRM - Free Report) , MRC Global Inc. (MRC - Free Report) and Donaldson Company, Inc. (DCI - Free Report) .
MRC Global, which also carries a Zacks Rank #2 (Buy), has an average positive earnings surprise of 20.00% for the last four quarters.
Donaldson also carries a Zacks Rank #2 and has delivered a positive average earnings surprise of 3.23% in the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Greif (GEF) Lags Q4 Earnings Estimates, Initiates FY17 View
The provider of industrial packaging products and services, Greif, Inc. (GEF - Free Report) reported adjusted earnings of 65 cents per share in fourth-quarter fiscal 2016 (ended Oct 31, 2016), which declined 14% year over year due to changes in income tax expense. Also, earnings fell short of the Zacks Consensus Estimate of 68 cents.
Including one-time items, the company posted earnings of 14 cents per share, a 33% plunge from 21 cents per share recorded in the year-ago quarter.
Operational Update
Revenues edged down 0.9% year over year to $868 million from $869 million in the prior-year quarter, however beat the Zacks Consensus Estimate of $846 million. Adjusting for the effect of and currency translation, sales increased 5.3% on a year-over-year basis.
Cost of sales decreased 2% year over year to $684 million. Gross profit grew 9% year over year to $183 million. Gross margin expanded 180 basis points to 21.1% in the quarter. Selling, general and administrative (SG&A) expenses inched up 1% year over year to $96.5 million. Adjusted operating profit increased 21% year over year to $87 million. Adjusted operating margin improved 170 basis points to 10% in the quarter.
Segmental Performance
Rigid Industrial Packaging & Services: This segment reported sales of $603 million, up 0.3% from $601 million in the year-ago quarter. Excluding the effect of divestitures and currency translation, net sales was up 7% due to the impact of strategic volume and pricing decisions. Adjusted operating income surged 44% to $60.3 million from $41.8 million in the year-ago quarter.
Paper Packaging: Sales were up 5% year over year to $189 million, on the back of increases in volumes, offset by reductions in the published containerboard index prices which occurred during 2016. The segment reported an operating profit of $24.7 million, down 24% from the year-ago quarter, hit by higher input costs, primarily old corrugated container costs, as well as reductions in published containerboard index prices.
Flexible Products & Services: Sales from this segment went down 6% year over year to $69 million. Excluding the impact of divestitures, sales decreased 3% mainly due to the negative impact of currency translation. The segment reported adjusted operating profit of $0.1 million versus operating loss of $5.3 million in the prior-year quarter. The improvement was driven by lower fixed costs and the impact of strategic volume and pricing decisions throughout 2016.
Land Management: The segment’s sales plummeted 54% year over year to $6.6 million due to the sale of 5,200 acres of development properties in Canada during the prior-year quarter. Adjusted operating income improved 43% year over year to $2 million.
Financial Position
At the end of fiscal 2016, Greif had cash and cash equivalents of $103.7 million compared with $106.2 million as of fiscal 2015 end. The company reported cash from operations of $301 million in fiscal 2016, compared with $206 million in the prior fiscal. Long-term debt was $974.6 million as of fiscal 2016 end, compared with $1,116 million as of fiscal 2015 end.
On Dec 6, 2016, Greif declared a quarterly dividend of 42 cents per share of Class A Common Stock and 62 cents per share of Class B Common Stock. Dividends are payable on Jan 1, 2017, to stockholders of record at the close of business as of Dec 19, 2016.
Fiscal 2016 Performance
For fiscal 2016, Greif reported adjusted earnings of $2.44 per share, up 12% from the prior fiscal. Earnings, however, fell short of the Zacks Consensus Estimate of $2.46. Including one-time items, the company reported earnings of $1.28 per share, up 4% year over year. Revenues dipped 8% year over year to $3.32 billion from $3.62 billion in the year-ago quarter, but came ahead of the Zacks Consensus Estimate of $3.30 billion.
GREIF INC Price, Consensus and EPS Surprise
GREIF INC Price, Consensus and EPS Surprise | GREIF INC Quote
Guidance
Greif projects fiscal 2017 earnings per share to range between $2.78 and $3.08. Compared to the adjusted earnings per share of $2.44 in fiscal 2016, the guidance range depicts year-over-year growth in the range of 14–26%.
Delaware, OH-based Greif makes and sells industrial packaging products, bulk containers, and containerboard and corrugated products worldwide. The company provides services such as blending, filling, packaging and recycling of industrial containers for a wide range of industries. Greif also manages timber properties in North America and offers land management consulting services.
Zacks Rank
Greif currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same sector include Alarm.Com Holdings, Inc. (ALRM - Free Report) , MRC Global Inc. (MRC - Free Report) and Donaldson Company, Inc. (DCI - Free Report) .
Alarm.Com Holdings has an impressive track record of earnings surprises, with an average positive earnings surprise of 9.09% for the last four quarters and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MRC Global, which also carries a Zacks Rank #2 (Buy), has an average positive earnings surprise of 20.00% for the last four quarters.
Donaldson also carries a Zacks Rank #2 and has delivered a positive average earnings surprise of 3.23% in the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>