Greif Stock Rallies After Crushing Estimates, Analyst Cautious By Investing.com

By Senad Karaahmetovic

Shares of Greif (NYSE:) are up greater than 4% in premarket buying and selling Thursday after the corporate reported second-quarter earnings and web gross sales that beat consensus estimates.

Greif Q2 adjusted EPS of $2.41, up from $1.13 within the year-ago interval and above the analyst consensus of $1.71 per share. Internet gross sales got here in at $1.67 billion, up 24% YoY and above the consensus projection of $1.51 billion.

Greif reported an adjusted EBITDA of $251 million within the interval, up 42% YoY and topping the consensus estimates of $209.4 million.

For the complete fiscal yr, Greif expects adjusted EPS within the vary of $7.45 to $7.75, whereas analysts have been searching for $6.61 per share. FY adjusted free money movement is anticipated to vary from $380 million to $440 million.

KeyBanc analyst Adam Josephson stays cautious on GEF inventory regardless of the “large beat.”

“We anticipate GEF’s quantity tendencies to proceed to deteriorate within the quarters forward as the worldwide economic system does the identical, which begs the query of how for much longer the Firm’s substantial value/price advantages will final. We nonetheless anticipate a good response within the inventory tomorrow due to the large adj. EBITDA/EPS beat and lift,” Josephson informed shoppers in a be aware.

BofA analyst George Staphos is rather more constructive on GEF inventory as he maintained a Purchase score and a $77.00 per share value goal.

“Efficiency in each World Industrial Packaging (GIP) and Paper Packaging & Providers (PPS) was sturdy and pushed significantly by value/combine which contributed 35.5% and 25% to section revenues, respectively… We stay inspired by GEF’s progress on debt discount ($213.5mn in F2Q) and the corporate’s leverage is now at 2.12x, the low finish of its goal vary of 2-2.5x,” Staphos stated in a be aware.