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.
Greif (GEF) Shares Rise 2% on Upbeat Fiscal Q2 Guidance
Read MoreHide Full Article
Greif, Inc. (GEF - Free Report) shares gained 2% as it raised second-quarter fiscal 2021 outlook on stronger-than-anticipated volumes and selling prices in the Global Industrial Packaging business, and a slightly lower-than-anticipated tax rate. The company now expects adjusted earnings per share in the quarter between $1.11 and $1.15. The mid-point of the revised guidance indicates a year-over-year growth of 19%. This is higher than the company's previous guidance range of 96 cents to $1.06 per share.
The company is slated to report second-quarter fiscal 2021 financial results after the market closes on Jun 9, 2021. The Zacks Consensus Estimate for earnings for the quarter is currently pegged at $1.00, indicating year-over-year growth of 5.3%. The consensus mark for revenues stands at $1.21 billion, suggesting growth of 4.5% from $1.16 billion in the year-ago quarter.
Greif has surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The company has trailing four-quarter earnings surprise of 9.9%, on average.
Greif has been witnessing increase in demand in food, pharmaceutical and household goods industries owing to the COVID-19 pandemic. The company is seeing broad-based improvement in several of its key end markets. The industrial sector has been witnessing a pickup in activity over the past few months on gradual resumption of the global economic activities and reopening of businesses. Sales to lubricant and bulk chemical customers have been high courtesy of enhanced auto demand and generally improving industrial conditions worldwide. Tanks and coating sales were up due to better auto and construction demand, while sales to pharma and personal care markets remain robust. This is likely to reflect on second-quarter fiscal 2021 top line.
In Paper Packaging segment, the company recently announced price increases for containerboard and uncoated recycled boxboard grades in response to strong demand and mitigate the impact of cost inflation. It will continue to benefit from focus on operational execution, capital discipline, and a strong and diverse product portfolio. Its restructuring actions will also lead to savings. All these factors will reflect on the quarter’s earnings. However, increasing raw material costs and higher-than-anticipated SG&A expense primarily due to higher incentive accruals will offset some of these benefits.
Price Performance
The leading global producer of industrial packaging products has soared 102.6% in the past year, outperforming the industry’s rally of 50%.
AGCO Corporation has a projected earnings growth rate of 54.6% for the current year. Shares of the company have soared 159% over the past year.
Avery Dennison has an estimated earnings growth rate of 20.8% for 2021. The company’s shares have rallied 105% in a year’s time.
Caterpillar has an expected earnings growth rate of 45.6% for the ongoing year. Over the past year, the stock has appreciated 106%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Greif (GEF) Shares Rise 2% on Upbeat Fiscal Q2 Guidance
Greif, Inc. (GEF - Free Report) shares gained 2% as it raised second-quarter fiscal 2021 outlook on stronger-than-anticipated volumes and selling prices in the Global Industrial Packaging business, and a slightly lower-than-anticipated tax rate. The company now expects adjusted earnings per share in the quarter between $1.11 and $1.15. The mid-point of the revised guidance indicates a year-over-year growth of 19%. This is higher than the company's previous guidance range of 96 cents to $1.06 per share.
The company is slated to report second-quarter fiscal 2021 financial results after the market closes on Jun 9, 2021. The Zacks Consensus Estimate for earnings for the quarter is currently pegged at $1.00, indicating year-over-year growth of 5.3%. The consensus mark for revenues stands at $1.21 billion, suggesting growth of 4.5% from $1.16 billion in the year-ago quarter.
Greif has surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The company has trailing four-quarter earnings surprise of 9.9%, on average.
Greif has been witnessing increase in demand in food, pharmaceutical and household goods industries owing to the COVID-19 pandemic. The company is seeing broad-based improvement in several of its key end markets. The industrial sector has been witnessing a pickup in activity over the past few months on gradual resumption of the global economic activities and reopening of businesses. Sales to lubricant and bulk chemical customers have been high courtesy of enhanced auto demand and generally improving industrial conditions worldwide. Tanks and coating sales were up due to better auto and construction demand, while sales to pharma and personal care markets remain robust. This is likely to reflect on second-quarter fiscal 2021 top line.
In Paper Packaging segment, the company recently announced price increases for containerboard and uncoated recycled boxboard grades in response to strong demand and mitigate the impact of cost inflation. It will continue to benefit from focus on operational execution, capital discipline, and a strong and diverse product portfolio. Its restructuring actions will also lead to savings. All these factors will reflect on the quarter’s earnings. However, increasing raw material costs and higher-than-anticipated SG&A expense primarily due to higher incentive accruals will offset some of these benefits.
Price Performance
The leading global producer of industrial packaging products has soared 102.6% in the past year, outperforming the industry’s rally of 50%.
Zacks Rank & Stocks to Consider
Greif currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include AGCO Corporation (AGCO - Free Report) , Avery Dennison Corporation (AVY - Free Report) and Caterpillar Inc. (CAT - Free Report) . All of these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AGCO Corporation has a projected earnings growth rate of 54.6% for the current year. Shares of the company have soared 159% over the past year.
Avery Dennison has an estimated earnings growth rate of 20.8% for 2021. The company’s shares have rallied 105% in a year’s time.
Caterpillar has an expected earnings growth rate of 45.6% for the ongoing year. Over the past year, the stock has appreciated 106%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>