Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: GEF

Ohio Industrial Packaging Maker Greif Records 24% Growth in Q3 Revenue; Shares Trading 14% Higher

Share on Stocktwits

Source:

Shares of global industrial packaging manufacturer Greif Inc. are trading 14% higher today after the company announced Q3/19 earnings.

Industrial packaging products manufacturer and services provider Greif Inc. (GEF:NYSE) yesterday announced third quarter 2019 earnings for the period ending July 31, 2019.

The company reported that in Q3/19, net sales increased by $240.5 million (+23.76%) to $1,252.6 million compared to $1,012.1 in Q3/18 and during the same period gross profit increased by $62.3 million to $279.4 million. Net income in Q3/19 decreased to $62.7 million or $1.06 per diluted Class A share compared to net income of $67.7 million or $1.15 per diluted Class A share in Q3/18.

The company, which operates through three major product divisions, itemized Q3/19 performance separately for each group as follows: Rigid Industrial Packaging & Services Net sales decreased by $45.5 million to $642.1 million; Paper Packaging & Services Net sales increased by $294.4 million to $530.0 million; and Flexible Products & Services Net sales decreased by $8.1 million to $74.5 million. In addition, its Land Management Net sales increased by $0.1 million to $6.0 million.

Pete Watson, the company's president and CEO stated, "Greif produced solid Q3/19 results despite ongoing market softness and a weakening industrial economy...Q3/19 adjusted EBITDA rose by roughly 39.0% versus Q3/18, while Class A earnings per share, excluding the impact of adjustments, increased by 5.0%...Our newly acquired Caraustar operations performed better than our original assumptions. However, we faced weaker market demand in our containerboard operations and in certain segments of our Rigid Industrial Packaging business. In light of external headwinds, we are implementing additional optimization measures in parts of our portfolio to lower costs and better navigate challenging market conditions. We remain laser focused on those areas within our control to more profitability serve our customers. I remain highly confident in our long term plan to drive more sustainable free cash flow, delever our balance sheet, and grow our profits".

Greif Inc. is headquartered in Delaware, Ohio, and is a global industrial packaging products manufacturer and services provider employing 17,000 people worldwide with operations in 43 countries. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse mix of specialty products. The firm also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. The company also manages timber properties in the southeastern U.S.

Greif shares opened today at $35.00 (+$2.66, +8.23%) over yesterday's $32.34 closing price. The stock has traded between $34.10 and $37.71 /share today and is presently trading at $36.95 (+$4.65, +14.40%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.





Want to read more about Technology investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe