Why Greif Shares Are Surging After Hours Today

Greif, Inc GEF reported second-quarter net sales growth of 24.4% year-over-year to $1.67 billion, beating the consensus of $1.51 billion.
Global Industrial Packaging net sales increased by $173.7 million to $971.7 million, and Paper Packaging & Services n et sales increased by $152.3 million to $689.3 million.
The gross margin expanded by 50 bps to 20.3%. The operating profit declined by 5.2% Y/Y to $190.1 million, and the margin contracted 356 bps to 11.4%.
Adjusted EPS was $2.41, above the consensus of $1.71.
Adjusted EBITDA was $251 million (+42.1% Y/Y), and the margin expanded 188 bps to 15.1%.
Net cash provided by operating activities decreased to $139.2 million, from $152.2 million in 2Q21. Adjusted free cash flow was $114.8 million.
The Company's leverage ratio decreased to 2.12x from 2.39x sequentially and from 3.20x in the prior-year quarter.
Dividend: GEF declared quarterly cash dividends of $0.46 per share of Class A Common Stock and $0.69 per share of Class B Common Stock. Payable on July 1, 2022, to stockholders of record at the close of business on June 17, 2022.
FY22 Outlook: Greif expects Class A earnings per share before adjustments of $7.45 - $7.75 vs. a consensus of $6.61; and Adjusted free cash flow of $380 million - $440 million.
Price Action: GEF shares are trading higher by 6.70% at $64.99 during the post-market session on Wednesday.
Photo Courtesy: Company