Greif (GEF) to Report Q3 Earnings: What's in the Offing?
Greif, Inc. GEF is scheduled to release third-quarter fiscal 2023 financial numbers after the closing bell on Aug 30.
Q3 Estimates
The Zacks Consensus Estimate for the company’s fiscal third-quarter earnings is pegged at $1.56 per share, suggesting a fall of 33.6% from the year-ago reported number.
The Zacks Consensus Estimate for fiscal third-quarter total revenues is pinned at $1.32 billion, indicating a decrease of 18.4% from the year-ago quarter’s reported levels.
Greif, Inc. Price and EPS Surprise
Greif, Inc. price-eps-surprise | Greif, Inc. Quote
Q2 Results
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate, while revenues missed the same. The top and bottom lines fell year over year. Greif has a trailing four-quarter earnings surprise of 7.7%, on average.
Key Factors
Greif’s fiscal third-quarter performance is likely to have benefited from its implementation of cost rationalization measures within its system. In the second quarter of fiscal 2023, implementing cost rationalization measures led to the highest-ever second-quarter free cash flow in the company's history.
The to-be-reported quarter’s performance is also likely to have gained from the company’s focus on operational execution, capital discipline, and a strong and diverse product portfolio.
However, Greif had been witnessing a decline in demand, the impacts of elevated costs and persisting supply-chain issues. These are expected to have offset the above-mentioned benefits in the quarter.
The Global Industrial Packaging segment has witnessed lower volumes over the past few quarters. Demand in North America has weakened due to muted domestic spending amid inflationary pressures and higher interest rates. Lower volumes and average selling prices are also likely to have impacted the company’s performance in the to-be-reported quarter. Our model projects the segment’s revenues to fall 20.5% year over year to $721 million. We expect Global Industrial Packaging’s operating income to be $70 million, indicating a year-over-year fall of 34.6% , factoring in the lower sales and higher costs.
The company’s Paper Packaging segment has also been bearing the brunt of lower volumes over the past few quarters. Demand remains soft across most key end markets, with continued weakness in textiles and paper core. We project the segment’s revenues to fall 15.5% to $600 million in the quarter. The operating income is estimated to fall 19.1% to $78 million.
Our model predicts the Land Management segment’s sales to fall 2.6% to $5 million in the third quarter of fiscal 2023. We predict the segment’s operating income to rise 8.8% year over year to $2 million.
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 -5.13%.
Zacks Rank: Greif currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price Performance
Greif’s shares have gained 5.4% in the past year against the industry’s fall of 5.5%.
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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.
The J. M. Smucker Co. SJM is scheduled to release fiscal first-quarter 2024 results on Aug 29. It currently has an Earnings ESP of +0.24% and a Zacks Rank of 2.
The Zacks Consensus Estimate for SJM’s fiscal first-quarter 2024 earnings is pegged at $2.07 per share, suggesting a 24% increase from the year-ago quarter’s reported level. SJM has a trailing four-quarter average surprise of 14%.
Five Below FIVE is set to release its second-quarter fiscal 2023 earrings on Aug 30. It has an Earnings ESP of +1.21% and a Zacks Rank of 2.
The Zacks Consensus Estimate for FIVE’s second-quarter earnings is pegged at 83 cents per share, suggesting 12% growth from the year-earlier quarter’s reported number. FIVE has a trailing four-quarter average surprise of 28%.
American Eagle Outfitters, Inc. AEO is scheduled to release its second-quarter fiscal 2023 results on Sep 6. It currently has an Earnings ESP of +8.52% and a Zacks Rank of 2.
The Zacks Consensus Estimate for AEO’s fiscal second-quarter 2023 earnings per share is pegged at 15 cents, indicating 275% growth from the prior-year quarter’s actual. AEO has a trailing four-quarter earnings surprise of 9.2%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Greif, Inc. (GEF) : Free Stock Analysis Report
Five Below, Inc. (FIVE) : Free Stock Analysis Report
