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Greif (GEF) to Report Q3 Earnings: What's in the Offing?

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Greif, Inc. (GEF - Free Report) is scheduled to release third-quarter fiscal 2022 financial numbers after the closing bell on Aug 31.

Q3 Estimates

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.98 per share, suggesting year-over-year growth of 2.6%.

The Zacks Consensus Estimate for fiscal third-quarter total revenues is pinned at $1.63 billion, calling for an increase of 9.4% from the year-ago quarter’s levels.

Q2 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 22.8%, on average.

Key Factors

Greif’s fiscal third-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 demand in its global resin-based portfolio with higher volumes witnessed in 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. Additionally, 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 third quarter. Labor shortages and supply chain disruption coupled with increasing energy, chemical and transportation costs are major headwinds.

Greif, Inc. Price and EPS Surprise

Greif, Inc. Price and EPS Surprise

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

What the Zacks Model Unveils

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

Price Performance

Greif’s shares have increased 13.1% in the past year compared with the industry’s fall of 2.2%.

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.

Veeva Systems Inc. (VEEV - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank #3. The Zacks Consensus Estimate for the company’s fiscal fourth-quarter 2022 earnings is currently at $1.01, suggesting year-over-year growth of 7.5%. VEEV’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 7.3%.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $531 million, suggesting year-over-year growth of 16.5%.

Hewlett Packard Enterprise Company (HPE - Free Report) currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. The Zacks Consensus Estimate for Hewlett Packard’s fiscal third-quarter 2022 earnings is pegged at 48 cents per share, suggesting 2.13% growth from the year-ago quarter’s levels.

The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.97 billion, suggesting year-over-year growth of 1.02%. HPE has a trailing four-quarter earnings surprise of 7.76%, on average.

Calavo Growers, Inc. (CVGW - Free Report) currently has an Earnings ESP of +2.78% and a Zacks Rank #3. The Zacks Consensus Estimate for Calavo Growers’ fiscal third-quarter 2022 earnings per share is currently pegged at 36 cents, indicating 311.7% growth from the prior-year quarter’s tally.

The Zacks Consensus Estimate for CVGW’s quarterly revenues is pegged at $324 million, which indicates year-over-year growth of 13.6%. The company has a trailing four quarters earnings surprise of 24.7%, on average.

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

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