Greif, Inc. (GEF - Free Report) reported fourth-quarter fiscal 2021 (ended Oct 31, 2021) adjusted earnings per share (EPS) of $1.93, which surpassed the Zacks Consensus Estimate of $1.49. The bottom line increased 147% year on year.
Including one-time items, earnings per share was $1.74 in the quarter compared with 74 cents in the prior-year quarter.
Operational Update
Sales surged 36% year over year to $1,578 million. The top line beat the Zacks Consensus Estimate of $1,445 million.
Cost of sales was up 38% year over year to $1,282 million. Gross profit amounted to $296 million, up 28% from the prior-year quarter’s levels. Gross margin came in at 18.7% compared with the year-ago quarter’s 19.9%.
Selling, general and administrative (SG&A) expenses were up 22% year over year to $142 million. Adjusted operating profit soared 66% year over year to $154 million. Adjusted operating margin was 9.8% in the reported quarter compared with 8.0% in the year-earlier period. Adjusted EBITDA increased 37% year over year to $211 million in the fiscal fourth quarter.
Segmental Performance
Sales in the Global Industrial Packaging segment increased 46% year over year to $952 million. The segment’s adjusted EBITDA amounted to $121 million compared with the year-ago quarter’s $74 million.
The Paper Packaging segment sales rose 24% year over year to $622 million in the fiscal fourth quarter. The segment’s adjusted EBITDA moved up to $87.7 million from the prior-year quarter’s $77.4 million.
The Land Management segment’s sales totaled $4.9 million in the reported quarter compared with $6.7 million in the year-ago quarter. Adjusted EBITDA was $2.2 million, down from the year-earlier quarter’s $3 million.
Financials
As of fourth-quarter fiscal 2021-end, Greif reported cash and cash equivalents of $124.6 million, compared with $105.9 million as of the end of fiscal 2020. Cash flow from operating activities totaled $137 million in the quarter under review compared with $200 million in the prior-year quarter.
Long-term debt amounted to $2,054.8 million as of Oct 31, 2021, compared with $2,335.5 million as of Oct 31, 2020.
On Dec 7, Greif’s board announced a quarterly cash dividend of 46 cents per share of Class A Common Stock and 68 cents per share of Class B Common Stock. The dividend payout will be made on Jan 1 to shareholders of record at the close of business on Dec 17, 2021.
Fiscal 2021 Results
Greif reported an adjusted EPS of $5.60 for fiscal 2021 compared with $3.22 reported in fiscal 2020. Earnings also beat the Zacks Consensus Estimate of $5.16. Including one-time items, the bottom line came in at $6.54, up 257% from the $1.83 reported in fiscal 2020.
Sales increased 23% year over year to $5.56 billion. The top line also surpassed the Zacks Consensus Estimate of $5.42 billion.
Outlook
Given strong end-market demand, Greif expects fiscal 2022 adjusted EPS between $5.85 and $6.45. Adjusted free cash flow is anticipated between $400 million and $460 million.
Price Performance
Greif’s shares have appreciated 35.6% in the past year compared with the industry’s growth of 13.2%.
Zacks Rank & Key Picks
Greif currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include SiteOne Landscape Supply (SITE - Free Report) , A. O. Smith Corporation (AOS - Free Report) and ScanSource, Inc. (SCSC - Free Report) . While SiteOne Landscape and A. O. Smith flaunt a Zacks Rank #1, (Strong Buy), ScanSource carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% over the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.
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Greif, Inc. (GEF - Free Report) reported fourth-quarter fiscal 2021 (ended Oct 31, 2021) adjusted earnings per share (EPS) of $1.93, which surpassed the Zacks Consensus Estimate of $1.49. The bottom line increased 147% year on year.
Including one-time items, earnings per share was $1.74 in the quarter compared with 74 cents in the prior-year quarter.
Operational Update
Sales surged 36% year over year to $1,578 million. The top line beat the Zacks Consensus Estimate of $1,445 million.
Cost of sales was up 38% year over year to $1,282 million. Gross profit amounted to $296 million, up 28% from the prior-year quarter’s levels. Gross margin came in at 18.7% compared with the year-ago quarter’s 19.9%.
Selling, general and administrative (SG&A) expenses were up 22% year over year to $142 million. Adjusted operating profit soared 66% year over year to $154 million. Adjusted operating margin was 9.8% in the reported quarter compared with 8.0% in the year-earlier period. Adjusted EBITDA increased 37% year over year to $211 million in the fiscal fourth quarter.
Segmental Performance
Sales in the Global Industrial Packaging segment increased 46% year over year to $952 million. The segment’s adjusted EBITDA amounted to $121 million compared with the year-ago quarter’s $74 million.
The Paper Packaging segment sales rose 24% year over year to $622 million in the fiscal fourth quarter. The segment’s adjusted EBITDA moved up to $87.7 million from the prior-year quarter’s $77.4 million.
The Land Management segment’s sales totaled $4.9 million in the reported quarter compared with $6.7 million in the year-ago quarter. Adjusted EBITDA was $2.2 million, down from the year-earlier quarter’s $3 million.
Financials
As of fourth-quarter fiscal 2021-end, Greif reported cash and cash equivalents of $124.6 million, compared with $105.9 million as of the end of fiscal 2020. Cash flow from operating activities totaled $137 million in the quarter under review compared with $200 million in the prior-year quarter.
Long-term debt amounted to $2,054.8 million as of Oct 31, 2021, compared with $2,335.5 million as of Oct 31, 2020.
On Dec 7, Greif’s board announced a quarterly cash dividend of 46 cents per share of Class A Common Stock and 68 cents per share of Class B Common Stock. The dividend payout will be made on Jan 1 to shareholders of record at the close of business on Dec 17, 2021.
Fiscal 2021 Results
Greif reported an adjusted EPS of $5.60 for fiscal 2021 compared with $3.22 reported in fiscal 2020. Earnings also beat the Zacks Consensus Estimate of $5.16. Including one-time items, the bottom line came in at $6.54, up 257% from the $1.83 reported in fiscal 2020.
Sales increased 23% year over year to $5.56 billion. The top line also surpassed the Zacks Consensus Estimate of $5.42 billion.
Outlook
Given strong end-market demand, Greif expects fiscal 2022 adjusted EPS between $5.85 and $6.45. Adjusted free cash flow is anticipated between $400 million and $460 million.
Price Performance
Greif’s shares have appreciated 35.6% in the past year compared with the industry’s growth of 13.2%.
Zacks Rank & Key Picks
Greif currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include SiteOne Landscape Supply (SITE - Free Report) , A. O. Smith Corporation (AOS - Free Report) and ScanSource, Inc. (SCSC - Free Report) . While SiteOne Landscape and A. O. Smith flaunt a Zacks Rank #1, (Strong Buy), ScanSource carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% over the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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