The 10-second takeaway
For the quarter ended April 30 (Q2), Greif met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Greif reported revenue of $1.10 billion. The seven analysts polled by S&P Capital IQ expected a top line of $1.09 billion on the same basis. GAAP reported sales were 4.2% higher than the prior-year quarter's $1.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The six earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.78 for Q2 were 27% lower than the prior-year quarter's $1.07 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.5%, 120 basis points worse than the prior-year quarter. Operating margin was 7.4%, 230 basis points worse than the prior-year quarter. Net margin was 3.4%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $4.46 billion. The average EPS estimate is $3.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 333 members out of 342 rating the stock outperform, and nine members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Greif a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Greif is outperform, with an average price target of $57.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.