By | June 6, 2019

Greif, Inc. (NYSE:GEF) spotted trading -38.14% off 52-week high price. On the other end, the stock has been noted 22.08% away from the low price over the last 52-weeks. The stock changed 0.21% to recent value of $38.82. The stock transacted 243904 shares during most recent day however it has an average volume of 177.98K shares. The company has 52.96M of outstanding shares and 31.45M shares were floated in the market.  

Greif, Inc. (NYSE:GEF, GEF.B), a world leader in industrial packaging products and services, declared second quarter 2019 results.

Second Quarter Highlights include (all results compared to the second quarter of 2018 unless otherwise noted):

Net sales increased by $245.0 million to $1,213.3 million.

Gross profit increased by $53.4 million to $248.7 million.

Net income of $13.6 million or $0.23 per diluted Class A share decreased compared to net income of $45.1 million or $0.77 per diluted Class A share. Net income, excluding the impact of adjustments, of $47.6 million or $0.81 per diluted Class A share increased compared to net income, excluding the impact of adjustments, of $44.7 million or $0.76 per diluted Class A share. Adjusted EBITDA increased by $38.7 million to $162.0 million.

Net cash provided by operating activities increased by $4.0 million to $62.2 million.  Adjusted Free Cash Flow increased by $16.2 million to $46.1 million.

Completed the acquisition of Caraustar Industries, Inc. (“Caraustar”), on February 11, 2019 and included the results of Caraustar in the Company’s financial results under the Paper Packaging & Services segment since that date.

Identified $15.0 million of new estimated run-rate synergies related to the Caraustar acquisition. The company now estimates that it will be able to achieve at least $60.0 million of run rate synergies over the 36 months from deal close.

“Greif produced solid financial results in fiscal second quarter 2019 despite the continuation of trade-related market softness in parts of our global Rigid Packaging segment and a more challenging demand environment in our Paper Packaging segment in the U.S.,” said Pete Watson, Greif’s President and Chief Executive Officer. “Second quarter Adjusted EBITDA rose by roughly 31.0 percent versus the prior year quarter, while Class A earnings per share, excluding the impact of adjustments, increased by more than 6.5 percent.”

“We completed the Caraustar acquisition during the quarter and are currently integrating these operations in a disciplined manner. I am pleased with the energy and pace of the integration, but I am most impressed with how well our teams have come together. Through their collective efforts, the combined team has uncovered a variety of operational enhancements and new synergies not previously identified during the due diligence process.”

“We have revised our fiscal 2019 guidance slightly higher, despite expected continuation of market demand challenges for the remainder of the fiscal year. Looking beyond 2019, the long term fundamentals for our business remain favorable as we integrate Caraustar into our business and advance ongoing value optimization activities in our global portfolio. Our team remains focused on delivering exceptional value for our shareholders and customers.”

 Its earnings per share (EPS) expected to touch remained 59.70% for this year while earning per share for the next 5-years is expected to reach at 15.00%. GEF has a gross margin of 20.40% and an operating margin of 9.60% while its profit margin remained 4.70% for the last 12 months. 

 According to the most recent quarter its current ratio was 1.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 4.45% from the mean of 20 days, -0.12% from mean of 50 days SMA and performed -12.18% from mean of 200 days price. Company’s performance for the week was 9.41%, -3.07% for month and YTD performance remained 4.61%.

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Theresa Mitchell

About Theresa Mitchell

Theresa Mitchell studied a business degree majoring in finance and security analysis. She has a deep understanding of both technical and fundamental forms of analysis, she deeply believes that it makes a lot more sense for average investors to understand fundamental analysis, which she believes anyone can learn. Theresa has over 10 years of experience as a professional journalist, writer and an editor. She holds a bachelor’s degree in International Business from University of Melbourne. She writes articles about hot stocks, dividend growth investing, options trading, investment decisions, stock selection, portfolio management, and passive income generation. Theresa primarily reports on Hot Stocks category. Email Contact:

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