Greif Analysts Increase Their Forecasts After Q2 Results

Greif, Inc. GEF reported mixed results for its second quarter on Thursday.

Greif posted adjusted earnings of 82 cents per share, missing market estimates of 85 cents per share. The company's quarterly sales came in at $1.371 billion versus expectations of $1.300 billion, according to data from Benzinga Pro.

“We are excited to present another quarter of solid progress on our Build to Last Strategy, including completing our Ipackchem acquisition and achieving multiple other milestones on our Build to Last missions,” stated Ole Rosgaard, Chief Executive Officer of Greif. “These missions, enabled by operating excellence, are structurally improving our operating efficiency, creating significant operating leverage as we saw continued signs of demand improvement in many of our key regions and end markets during the quarter. On the demand side, our second quarter results exceeded our expectations, however results were impacted by significant negative price or cost in our paper business from the continued delayed recognition of announced price increases. For the time being, we continue to monitor and manage the improving demand alongside our customers, while strictly managing costs to ensure value creation.”

Greif said it sees FY24 adjusted EBITDA of $675 million to $725 million.

Greif shares fell 2.6% to close at $61.38 on Thursday.

These analysts made changes to their price targets on Greif after the company reported quarterly results.

• B of A Securities raised the price target on Greif from $75 to $76. B of A Securities analyst George Staphos maintained a Neutral rating.
• Wells Fargo increased Greif price target from $78 to $80. Wells Fargo analyst Gabe Hajde maintained an Overweight rating on the stock.

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