Back to top

Image: Bigstock

Greif (GEF) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Greif, Inc. (GEF - Free Report) is scheduled to release fourth-quarter fiscal 2020 (ended as of Oct 31, 2020) financial numbers, after the bell on Dec 9. The company has a trailing four-quarter average earnings surprise of 12.73%.

Where are the Q4 Estimates Treading?

The Zacks Consensus Estimate for the company’s earnings is pegged at 72 cents for the fiscal fourth quarter, suggesting a year-over-year plunge of 41.9%.

The Zacks Consensus Estimate for total revenues for the quarter under review is pinned at $1.17 billion, calling for a 5.4% decline from the year-ago quarter.

Greif, Inc. Price and EPS Surprise

Greif, Inc. Price and EPS Surprise

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

Earnings Whispers

Our proven model conclusively predicts 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.

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 +2.08%.

Zacks Rank: Greif currently carries a Zacks Rank of 3.

Key Factors

The company’s efforts to reduce costs and pricing actions in order to counter the softer market demand might have boosted margins during the fiscal fourth-quarter. However, normal business seasonality and higher costs are likely to have marred the company’s profitability during the quarter under review. Further, the company continues to face challenging industrial end markets demand amid unfavorable impact of the pandemic.

The Zacks Consensus Estimate for the Rigid Industrial Packaging & Services segment’s sales is pegged at $600 million for the to-be-reported quarter, down 3% year over year. Given the segment’s 60%  sales are generated from steel drums, volume declines in steel drums might have eroded the segment’s revenues during the fiscal fourth quarter.

The company’s Paper Packaging segment is likely to have benefited from the Caraustar acquisition and various new capital growth projects during the quarter in discussion. Given the pandemic-related crisis, increased packaging demand for food and grocery products, corrugated containers and other corrugated products might have contributed to the segment’s performance. However, divestment of the consumer packaging business and lower published containerboard and boxboard prices are likely to have hurt the segment. The Zacks Consensus Estimate for the segment’s quarterly net sales is currently pegged at $514 million, calling for a year-over-year decline of 4%.

The Zacks Consensus Estimate for the Flexible Products & Services segment’s revenues is pinned at $69 million, suggesting a 2.8% fall from the prior-year quarter.

The Zacks Consensus Estimate for the Land Management segment’s revenues is pinned at $7 million compared with the year-ago quarter’s $7.10 million.

Share Price Performance

Greif’s shares have gained 14.8% in the past year, outperforming the industry’s growth of 13.7%.



Other Stocks Worth a Look

Here are some other stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Allegiance Bancshares, Inc. has an Earnings ESP of +2.37% and flaunts a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Airlines Group Inc. (AAL - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +12.82%.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +0.04% and carries a Zacks Rank #3, currently.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Agilent Technologies, Inc. (A) - $25 value - yours FREE >>

American Airlines Group Inc. (AAL) - $25 value - yours FREE >>

Greif, Inc. (GEF) - $25 value - yours FREE >>

Published in