NYSE$GEF

Greif Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Greif reported strong second quarter results and reintroduced fiscal year 2021 earnings guidance.

Greif delivered a strong second quarter with solid results across the company, driving improved earnings and free cash flow. The company also enhanced colleague engagement and customer service levels, advanced its commitment to sustainability and achieved a notable reduction in leverage.

  • Net income increased to $149.8 million, or $2.51 per diluted Class A share.
  • Net cash provided by operating activities increased by $52.5 million to $152.3 million.
  • Total debt decreased by $368.9 million to $2,313.4 million.
  • Completed the sale of approximately 69,200 acres of timberlands for approximately $149.0 million in cash.

Headline financials

Total Revenue

$1.34B

Previous: $1.16B+15.7%
EPS (adj)

$1.13

Previous: $0.95+18.9%
Capital Expenditures

-$60.2M

Previous: -$68.2M+11.7%
Free Cash Flow

$89.6M

Previous: -$56.8M+257.7%
Net Income

$150M

Previous: $11.4M+1214.0%
Operating Income

$201M

Previous: $72M+178.6%
Gross Profit

$266M

Previous: $241M+10.5%
Cash & Equivalents

$110M

Previous: $72.4M+52.5%
Total Assets

$5.59B

Previous: $5.53B+1.1%

Revenue & EPS history

Greif · Revenue · Quarterly

$1.34B

Q2 2021+15.7%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company reintroduces annual guidance for fiscal 2021 with Class A earnings per share before adjustments expected to be $4.55 - $4.85 and adjusted free cash flow expected to be $285 - $325 million.

Tailwinds

  • Class A earnings per share before adjustments: $4.55 - $4.85
  • Adjusted free cash flow: $285 - $325 million
  • Depreciation and amortization expense: $237 - $242 million
  • Interest expense, net: $97 - $101 million
  • Adjusted capital expenditures: $130 - $150 million

Headwinds

  • Tax rate excluding the impact of special items: 22% - 26%
  • Potential for gains or losses on the disposal of businesses, timberland or properties, plants and equipment, net
  • Non-cash asset impairment charges due to unanticipated changes in the business
  • Restructuring-related activities
  • Non-cash incremental COVID-19 costs, net

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

-0.8%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+18.4%

Q4 2017

Best reaction

-14.6%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.4%+4.6%-3.1%
Q1 2026-1.0%+5.0%-2.2%
Q4 2025+0.8%+4.6%+14.2%
Q2 2025+15.0%+16.6%+26.6%
Q1 2025-8.4%-9.5%-9.1%
Q4 2024-1.9%-4.3%-14.3%
Q3 2024-2.0%-1.1%-1.4%
Q2 2024-3.0%-4.2%-10.6%
Q1 2024+4.1%+2.1%+11.5%
Q4 2023-4.1%-9.4%-8.6%
Q3 2023-1.6%-1.5%-9.4%
Q2 2023+12.4%+15.6%+9.3%
Q1 2023-7.0%-8.3%-10.8%
Q4 2022-3.3%-2.6%-4.3%
Q3 2022-4.3%-1.8%-13.0%
Q2 2022+3.7%-2.9%-2.3%
Q1 2022+8.1%+4.9%+17.0%
Q4 2021+0.3%-5.4%-4.5%
Q3 2021+4.1%+8.0%+4.2%
Q2 2021+2.5%+2.2%-1.2%
Q1 2021+3.8%+9.8%+25.8%
Q4 2020-5.7%-8.6%+0.1%
Q3 2020-7.8%-5.2%-7.5%
Q2 2020+12.1%+22.6%+2.8%
Q1 2020-7.8%-5.0%-19.6%
Q4 2019+0.4%+3.7%+1.6%
Q3 2019+15.8%+11.3%+20.3%
Q2 2019-12.2%-10.3%-12.6%
Q1 2019-5.4%-2.7%-2.9%
Q4 2018-9.8%-10.6%-24.4%
Q3 2018+3.7%+0.3%-2.5%
Q2 2018-6.2%-4.3%-13.0%
Q1 2018-14.6%-13.7%-10.6%
Q4 2017+18.4%+14.7%+12.6%
Q3 2017+6.8%+3.5%+3.4%
Q2 2017-6.9%-8.0%-3.9%
Q1 2017-6.7%-2.9%-3.4%
Q4 2016+3.3%+4.6%-2.7%
Q3 2016+5.4%+7.2%+15.3%
Q2 2016+8.0%+5.5%+1.8%
Q1 2016-0.2%
Q4 2015+7.1%
Q3 2015+15.0%
Q2 2015+1.2%
Q1 2015-14.1%
Q4 2014-4.4%
Q3 2014-0.7%
Q2 2014-1.5%
Q1 2014-0.2%
Q4 2013-6.0%
Q3 2013-3.8%
Q2 2013+3.5%
Q1 2013+0.6%
Q4 2012-1.3%
Q3 2012+1.6%
Q2 2012-3.7%
Q1 2012-0.4%
Q4 2011-0.9%
Q3 2011-1.0%
Q2 2011+1.7%
Q1 2011+0.0%
Q4 2010+1.4%
Q3 2010-0.1%
Q2 2010+3.4%
Q1 2009+0.8%

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