Thursday, 15 December 2016 08:15 AM
Upcoming AWS Coverage on Berry Plastics Group Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 15, 2016 / Active Wall St. announces its post-earnings coverage on Greif, Inc. (NYSE: GEF). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on December 07, 2016. The Delaware, Ohio-based company's net sales was down on a year-over-year basis; however net sales beat market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Greif's competitors within the Packaging & Containers space, Berry Plastics Group, Inc. (NYSE: BERY), reported ON November 29, 2016, results for its fourth fiscal 2016 quarter and fiscal year 2016. AWS will be initiating a research report on Berry Plastics in the coming days.
Today, AWS is promoting its earnings coverage on GEF; touching on BERY. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=GEF
http://www.activewallst.com/registration-3/?symbol=BERY
Earnings Reviewed
During Q4 FY16, Greif's net sales were down to $867.6 million from $868.5 million recorded at the end of Q4 FY15. Net sales numbers for the reported quarter outperformed consensus market expectations by $26.77 million. Additionally, net sales, after adjusting for the effect of divestitures for both quarters and currency translation, rose 7.3% y-o-y to $880.7 million in Q4 FY16.
The industrial packaging products and services company reported net income attributed to Greif of $8.5 million, or $0.14 per diluted Class A share, during Q4 FY16 compared to $12.4 million, or $0.21 per diluted Class A share, in the year ago same quarter. Excluding the impact of special items, net income for Q4 FY16 came in at $0.65 per diluted Class A share versus $0.76 per diluted Class A share in the prior year's same quarter. The Company's net income, excluding special items for Q4 FY16, missed market expectations of $0.68 per diluted Class A share.
For FY16, the company's net sales fell to $3.32 billion from $3.62 billion in the year ago comparable period. In FY16, net income attributed to Greif came in at $74.9 million, or $1.28 per diluted Class A share, compared to $71.9 million, or $1.23 per diluted Class A share, in FY15. Furthermore, excluding special items net income attributed to Greif for the reported quarter was $2.44 per diluted Class A share versus $2.18 per diluted Class A share in the prior year's same period.
Operating Metrics
During the three months ended on October 31, 2016, the company's gross profit improved to $183.4 million from $168.0 million in Q4 FY15. For the reported quarter, selling, general, and administrative came in at $96.5 million compared to $96.0 million in Q4 FY15. The company's operating profit also increased to$53.6 million in Q4 FY16 from $32.1 million in the prior year same quarter.
Segment Performance
During Q4 FY16, Rigid Industrial Packaging & Service's net sales were $602.9 million, up from $601.1 million in Q4 FY15. The segment's operating profit surged during Q4 FY16 to $30.5 million from $10.9 million in the prior year's comparable quarter.
Paper Packaging & Services contributed $189.0 million to total net sales during Q4 FY16 compared to $179.8 million in the last year's comparable period. However, the segment's reported operating profit fell to $24.7 million in Q4 FY16 from $32.6 million in Q4 FY15.
The company's Flexible Products & Services' net sales fell to $69.1 million in Q4 FY16 from $73.3 million in the prior year's comparable quarter. However, the segment's operating loss narrowed to $3.6 million in Q4 FY16, from operating loss of $12.8 million in the previous year's same quarter.
Greif's Land Management segment's net sales declined during Q4 FY16 to $6.6 million from $14.3 million in Q4 FY15. However, the segment's operating profit rose to $2.0 million in Q4 FY16 from $1.4 million in Q4 FY15.
Cash Flow and Balance Sheet
In the FY16, Greif's cash flow from operations totaled $143.0 million compared to $132.9 million in a year ago same period. As of October 31, 2016, the company had cash and cash equivalents balance of $103.7 million compared to $106.2 million, at the close of books on October 31, 2015. Additionally, the company reported long-term debt of $974.6 million as on October 31, 2016, versus $1.12 billion as on October 31, 2015.
Dividend
In a separate press release on December 06, 2016, Greif's Board of Directors announced quarterly cash dividends of $0.42 per share on its Class A Common Stock and $0.62 per share on its Class B Common Stock. The dividends are payable on January 01, 2017, to shareholders of record at close of business on December 19, 2016.
Outlook
For full year FY17, Greif anticipates Class A earnings per share before special items to be in the range of $2.78 per share to $3.08 per share.
Stock Performance
Greif's Class A share price finished yesterday's trading session at $53.70, slipping 1.77%. A total volume of 193.84 thousand shares exchanged hands. The stock has rallied 13.03% in the past three months, and 38.59% in the previous six months. Furthermore, since the start of the year, shares of the company have skyrocketed 80.56%. The stock is trading at a PE ratio of 34.29 and has a dividend yield of 3.13%.
Greif's Class B shares ended Wednesday's session at $71.75, falling 1.58%f from its previous day's closing of $72.90. A total of 10,320 shares exchanged hands during the trading session. The company's shares have a dividend yield of 3.40% and market capitalization of $2.99 billion.
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SOURCE: Active Wall Street