The provider of industrial packaging products and services, Greif, Inc. (GEF - Free Report) reported adjusted earnings of 45 cents per share in first-quarter fiscal 2017 (ended Jan 31, 2017), which increased 12.5% year over year. However, earnings fell short of the Zacks Consensus Estimate of 50 cents.
Including one-time items, the company posted earnings of 10 cents per share, compared to a loss of 19 cents per share recorded in the year-ago quarter.
Operational Update
Revenues increased 6% year over year to $820.9 million from $771.4 million in the prior-year quarter. Also, revenues beat the Zacks Consensus Estimate of $811 million.
Cost of sales increased 6% year over year to $657.6 million. Gross profit grew 8% year over year to $163.3 million. Gross margin expanded 20 basis points to 19.8% in the quarter. Selling, general and administrative (SG&A) expenses went up 3.6% year over year to $96.6 million. Adjusted operating profit climbed 14.8% year over year to $66.7 million. Adjusted operating margin advanced 50 basis points to 8% in the quarter.
Segmental Performance
Rigid Industrial Packaging & Services: This segment reported sales of $561.5 million, down 5% from $601 million in the year-ago quarter. Adjusted operating profit jumped 22.6% year over year to $43.4 million from $35.4 million.
Paper Packaging: Sales were up 15.5% year over year to $182.9 million, on the back of increases in volumes and increased sales of specialty products. The segment reported an adjusted operating profit of $19.9 million, down 12.3% year over year, due primarily to an increase in pension costs and allocated corporate costs.
Flexible Products & Services: Sales from this segment declined 4.4% year over year to $69.7 million. Excluding the impact of divestitures, sales increased 3.5% mainly due to product volume improvements. The segment reported adjusted operating profit of $1.6 million compared to an operating loss of $1.6 million in the year-earlier quarter.
Land Management: The segment’s sales plunged 30.8% year over year to $1.6 million. Operating income remained flat year over year at $2.1 million.
Greif Bros. Corporation Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The provider of industrial packaging products and services, Greif, Inc. (GEF - Free Report) reported adjusted earnings of 45 cents per share in first-quarter fiscal 2017 (ended Jan 31, 2017), which increased 12.5% year over year. However, earnings fell short of the Zacks Consensus Estimate of 50 cents.
Including one-time items, the company posted earnings of 10 cents per share, compared to a loss of 19 cents per share recorded in the year-ago quarter.
Operational Update
Revenues increased 6% year over year to $820.9 million from $771.4 million in the prior-year quarter. Also, revenues beat the Zacks Consensus Estimate of $811 million.
Cost of sales increased 6% year over year to $657.6 million. Gross profit grew 8% year over year to $163.3 million. Gross margin expanded 20 basis points to 19.8% in the quarter. Selling, general and administrative (SG&A) expenses went up 3.6% year over year to $96.6 million. Adjusted operating profit climbed 14.8% year over year to $66.7 million. Adjusted operating margin advanced 50 basis points to 8% in the quarter.
Segmental Performance
Rigid Industrial Packaging & Services: This segment reported sales of $561.5 million, down 5% from $601 million in the year-ago quarter. Adjusted operating profit jumped 22.6% year over year to $43.4 million from $35.4 million.
Paper Packaging: Sales were up 15.5% year over year to $182.9 million, on the back of increases in volumes and increased sales of specialty products. The segment reported an adjusted operating profit of $19.9 million, down 12.3% year over year, due primarily to an increase in pension costs and allocated corporate costs.
Flexible Products & Services: Sales from this segment declined 4.4% year over year to $69.7 million. Excluding the impact of divestitures, sales increased 3.5% mainly due to product volume improvements. The segment reported adjusted operating profit of $1.6 million compared to an operating loss of $1.6 million in the year-earlier quarter.
Land Management: The segment’s sales plunged 30.8% year over year to $1.6 million. Operating income remained flat year over year at $2.1 million.
Greif Bros. Corporation Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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