tiprankstipranks
Greif Posts Upbeat Quarterly Results; Shares Up 4.2%
Market News

Greif Posts Upbeat Quarterly Results; Shares Up 4.2%

Shares of Greif Inc. (GEF) rose 4.2% in Wednesday’s extended trading session after the company reported strong fiscal second quarter 2021 results. Greif is a leader in industrial packaging products and services.

The company’s revenues of $1.34 billion surpassed the Street’s estimates of $1.26 billion and jumped 15.7% from the year-ago period.

Earnings came in at $1.13 per share, beating the consensus estimates of $1.06 per share, and increased 18.9% year-over-year.

Greif CEO Pete Watson said, “In addition to strong underlying business performance that drove improved earnings and free cash flow, we enhanced colleague engagement and customer service levels, advanced our commitment to sustainability and achieved a notable reduction in our leverage.”

Watson added, “With improved visibility into customer demand patterns, we are reintroducing annual guidance for fiscal 2021. We are well-positioned to benefit from a growing global economy.” (See Greif stock analysis on TipRanks)

For fiscal year 2021, the company expects adjusted earnings per share to land in the range of $4.55-$4.85 versus the consensus of $3.86.

On May 20, Wells Fargo analyst Gabe Hajde reiterated a Buy rating on the stock and increased his price target to $77 from $68. This implies 28.4% upside potential from current levels.

The analyst remains encouraged by the company’s solid fundamentals. Given the ongoing recovery in industrial end markets and contribution from internal investments, among other factors, the analyst expects upside potential in shares.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 3 Buys, 1 Hold, and 1 Sell. The GEF average analyst price target of $63.20 implies 5.4% upside potential from the current levels. The shares have increased 25.1% over the past six months.

Greif scores a 6 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.

Related News:
Seagate Technology Increases Q4 2021 Guidance; Shares Rise 2.2%
Casey’s General Q4 Earnings Beat Expectations; Street Remains Cautiously Optimistic
Pegasystems Gives Green Light to Expand Share Buyback Program; Shares Jump 3.2%

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles