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Greif, Inc. (GEF - Free Report) reported adjusted earnings per share of $1.27 for first-quarter fiscal 2024, beating the Zacks Consensus Estimate of 20 cents. The bottom line increased 20% year over year.
Including one-time items, EPS was $1.75 in the quarter compared with $2.31 in the prior-year quarter.
Operational Update
Sales moved down 5.1% year over year to $1.20 billion due to lower volumes and average selling prices. However, the top line beat the Zacks Consensus Estimate of $1.19 billion.
The cost of sales declined 3.5% year over year to $984 million. Gross profit amounted to $222 million, down 11.9% from the prior-year quarter. The gross margin came in at 18.4%, down from last year’s 19.8%.
Selling, general and administrative expenses were $146 million compared with the prior-year quarter’s $139 million. Adjusted EBITDA declined 22.2% year over year to $128 million in the fiscal first quarter.
Sales in the Global Industrial Packaging segment were $687 million, lower than the prior-year quarter’s $706 million on declining volumes and average selling prices. Our model projected revenues of $645 million for the quarter. The segment’s adjusted EBITDA amounted to $71 million compared with the year-ago quarter’s $72 million. The reported figure beat our estimate of $46 million.
The Paper Packaging segment’s sales fell 8.1% year over year to $515 million in the fiscal first quarter due to a decline in volumes and lower selling prices. The figure missed our estimated sales of $550 million. The segment’s adjusted EBITDA moved down to $55.5 million from the prior-year quarter’s $91 million. We projected the segment’s adjusted EBITDA to be $43 million.
The Land Management segment’s sales totaled $4.6 million in the reported quarter compared with $5 million in the year-ago quarter. We projected the segment's sales to be $4.8 million in the quarter. Adjusted EBITDA was $1.6 million compared with the year-earlier quarter’s $2 million. Our projection for the quarter’s adjusted EBITDA was $1 million.
Financial Position
Greif reported cash and cash equivalents of $179 million at the end of first-quarter fiscal 2024 compared with $181 million at the end of fiscal 2023. Cash flow from operating activities totaled $4.5 million in the quarter under review compared with $33 million in the prior year quarter.
Long-term debt amounted to $2.18 billion as of Jan 31, 2024, compared with $2.12 billion as of Oct 31, 2023.
On Feb 6, Greif’s board announced a quarterly cash dividend of 52 cents per share of Class A Common Stock and 78 cents per share of Class B Common Stock. The dividend will be paid out on Apr 1, 2024, to shareholders of record at the close of the business as of Mar 18, 2022.
Outlook
Greif expects the low end of fiscal 2024 adjusted free cash flow to be $200 million. The low end of adjusted EBITDA is anticipated to be $610 million, up from the prior announced $585 million.
Price Performance
Greif’s shares have lost 11.4% in a year against the industry’s 2.6% growth.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 32.2% in the past year.
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Greif (GEF) Q1 Earnings Beat Estimates, Sales Decline Y/Y
Greif, Inc. (GEF - Free Report) reported adjusted earnings per share of $1.27 for first-quarter fiscal 2024, beating the Zacks Consensus Estimate of 20 cents. The bottom line increased 20% year over year.
Including one-time items, EPS was $1.75 in the quarter compared with $2.31 in the prior-year quarter.
Operational Update
Sales moved down 5.1% year over year to $1.20 billion due to lower volumes and average selling prices. However, the top line beat the Zacks Consensus Estimate of $1.19 billion.
The cost of sales declined 3.5% year over year to $984 million. Gross profit amounted to $222 million, down 11.9% from the prior-year quarter. The gross margin came in at 18.4%, down from last year’s 19.8%.
Selling, general and administrative expenses were $146 million compared with the prior-year quarter’s $139 million. Adjusted EBITDA declined 22.2% year over year to $128 million in the fiscal first quarter.
Greif, Inc. Price, Consensus and EPS Surprise
Greif, Inc. price-consensus-eps-surprise-chart | Greif, Inc. Quote
Segmental Performance
Sales in the Global Industrial Packaging segment were $687 million, lower than the prior-year quarter’s $706 million on declining volumes and average selling prices. Our model projected revenues of $645 million for the quarter. The segment’s adjusted EBITDA amounted to $71 million compared with the year-ago quarter’s $72 million. The reported figure beat our estimate of $46 million.
The Paper Packaging segment’s sales fell 8.1% year over year to $515 million in the fiscal first quarter due to a decline in volumes and lower selling prices. The figure missed our estimated sales of $550 million. The segment’s adjusted EBITDA moved down to $55.5 million from the prior-year quarter’s $91 million. We projected the segment’s adjusted EBITDA to be $43 million.
The Land Management segment’s sales totaled $4.6 million in the reported quarter compared with $5 million in the year-ago quarter. We projected the segment's sales to be $4.8 million in the quarter. Adjusted EBITDA was $1.6 million compared with the year-earlier quarter’s $2 million. Our projection for the quarter’s adjusted EBITDA was $1 million.
Financial Position
Greif reported cash and cash equivalents of $179 million at the end of first-quarter fiscal 2024 compared with $181 million at the end of fiscal 2023. Cash flow from operating activities totaled $4.5 million in the quarter under review compared with $33 million in the prior year quarter.
Long-term debt amounted to $2.18 billion as of Jan 31, 2024, compared with $2.12 billion as of Oct 31, 2023.
On Feb 6, Greif’s board announced a quarterly cash dividend of 52 cents per share of Class A Common Stock and 78 cents per share of Class B Common Stock. The dividend will be paid out on Apr 1, 2024, to shareholders of record at the close of the business as of Mar 18, 2022.
Outlook
Greif expects the low end of fiscal 2024 adjusted free cash flow to be $200 million. The low end of adjusted EBITDA is anticipated to be $610 million, up from the prior announced $585 million.
Price Performance
Greif’s shares have lost 11.4% in a year against the industry’s 2.6% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Greif currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Industrial Products sector are Proto Labs, Inc. (PRLB - Free Report) , AZZ Inc. (AZZ - Free Report) and Applied Industrial Technologies (AIT - Free Report) . PRLB currently sports a Zacks Rank #1 (Strong Buy), and AZZ and AIT carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Proto Labs’ 2024 earnings is pegged at $1.62 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days and suggests year-over-year growth of 1.9%. The company has a trailing four-quarter average earnings surprise of 42.2%. PRLB shares have gained 15.7% in the past year.
The Zacks Consensus Estimate for AZZ’s fiscal 2024 earnings per share is pegged at $4.19. The consensus estimate for 2024 earnings has moved north by 2% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 37.6%. AZZ shares have rallied 76.7% in the past year.
Applied Industrial has an average trailing four-quarter earnings surprise of 13.9%. The Zacks Consensus Estimate for AIT’s 2024 earnings is pinned at $9.43 per share, which indicates year-over-year growth of 7.8%. Estimates have been unchanged in the past 60 days. The company’s shares have gained 32.2% in the past year.