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Greif (GEF) to Report Q2 Earnings: What's in the Cards?

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Greif, Inc. (GEF - Free Report) is scheduled to release second-quarter fiscal 2022  financial numbers after the closing bell on Jun 8.

Q2 Estimates

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.79 per share, suggesting year-over-year growth of 58.4%.

The Zacks Consensus Estimate for fiscal second-quarter total revenues is pinned at $1.59 billion, calling for an increase of 18.7% from the year-ago quarter’s levels.

Q1 Results

In the last reported quarter, the company’s earnings and revenues beat the respective Zacks Consensus Estimate and increased year over year. Greif has a trailing four-quarter earnings surprise of 14.7%, on average.

Key Factors

Greif’s fiscal second-quarter performance is likely to have benefited from its  operational execution and restructuring activities, which include optimizing and integrating operations in the Paper Packaging & Services segment, rationalizing operations and closing underperforming assets in the Global Industrial Packaging segment. Price hikes implemented to combat inflated costs are likely to have driven the bottom line in the to-be-reported quarter.

The Global Industrial Packaging segment is gaining from strong key end markets and solid volume growth for global large plastic drums and Intermediate Bulk Container. These factors are likely to have contributed to the segment’s performance during the fiscal second quarter.

The company’s Paper Packaging segment is likely to have benefited from strong volumes in converting operations and higher selling prices due to higher published containerboard and boxboard prices. Improved demand for textiles and protective packaging has been driving the segment’s tube and core volumes. Also, the Caraustar acquisition and various new capital growth projects are likely to have contributed to the segment’s results during the quarter under review.

The pandemic-related crisis will continue to fuel packaging demand for food, pharmaceutical and household goods industries until the situation stabilizes. These are anticipated to have contributed to the segment’s performance during the quarter to be reported.

Higher Old Corrugated Container (OCC) costs and escalating costs for raw materials used in the papermaking process might have marred the company’s margin during the fiscal second quarter. Labor shortages and supply chain disruption are headwinds coupled with increasing energy, chemical and transportation costs.

Greif, Inc. Price and EPS Surprise

 

Greif, Inc. Price and EPS Surprise

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

 

What Our Zacks Model Indicates

Our proven model doesn’t conclusively predict 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. But that’s not the case here.

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 0.00%.

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

You can see the complete list of today’s Zacks #1 Rank stocks here.

Price Performance

Greif’s shares have lost 3.5% in the past six months compared with the industry’s growth of 4.4%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks Worth a Look

Here are some stocks worth considering as these have the right combination of elements to post an earnings beat in the upcoming releases.

Commercial Metals Company (CMC - Free Report) currently has an Earnings ESP of +8.63% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter fiscal 2022 earnings has moved up in the past 30 days and is currently pegged at $1.97 per share. This suggests a year-over-year increase of 89.4%.

The Zacks Consensus Estimate for quarterly revenues is pegged at $2.34 billion, indicating an increase of 27% from the prior-year quarter’s levels. Commercial Metals has a trailing four-quarter earnings surprise of 15.9%, on average.

The Kroger Co. (KR - Free Report) currently has an Earnings ESP of +2.95% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter fiscal 2022 earnings is currently pegged at $1.27 per share, suggesting 6.7% growth from the year-ago quarter’s tally.

The Zacks Consensus Estimate for quarterly revenues is pinned at $43.2 billion, highlighting year-over-year growth of 4.7%. Kroger has a trailing four-quarter earnings surprise of 22.07%, on average.

Mission Produce, Inc. (AVO - Free Report) currently has an Earnings ESP of +250.00% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter fiscal 2022 earnings has undergone downward revisions in the past 30 days and is currently pegged at a loss of 1 cent per share. This suggests year-over-year decline of 108.3%.

The Zacks Consensus Estimate for AVO’s quarterly revenues is pegged at $219 million, indicating year-over-year decline of 6.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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