Greif, Inc. (NYSE:GEF) shares were up 4.46% on Friday when approximately 282,497.00 shares were traded, against the average daily trading volume of 209,167.00. Analysts at Credit Agricole recently upgraded the stock to Underperform from Buy. Greif, Inc. (NYSE:GEF) has a consensus Hold rating, according to Zacks Investment Research. 2 analyst has rated the stock with a sell rating, 3 have assigned a hold rating, Zero says it’s a buy, and 1 have assigned a strong buy rating to the company.
The 52-week price range is $22.87-$57.66 and the company has a market capitalization of $3.11 billion.
Greif, Inc. (GEF) on December 7, 2016 announced fourth quarter and fiscal 2016 results. Pete Watson, President and Chief Executive Officer, stated “I am pleased with Greif’s solid fourth quarter results, which conclude an improved fiscal 2016 for our company. We increased Class A earnings before special items per share1 by 11.9 percent, more than doubled free cash flow2 to $200.9 million and returned $98.7 million in dividends to our shareholders, despite the effects of a tepid global industrial economy. Our performance benefited from improved customer service, stronger operating fundamentals and systematic fiscal discipline. Our plans for 2017 include furthering our commitment to customer service, continuing to improve our underlying business and achieving our 2017 run rate commitments. This will generate greater value for our customers and shareholders.”
Fourth Quarter Highlights include:
- Net income of $8.5 million or $0.14 per diluted Class A share compared to net income of $12.4 million or $0.21 per diluted Class A share for the fourth quarter of 2015. Net income, excluding the impact of special items, of $38.5 million or $0.65 per diluted Class A share compared to net income, excluding the impact of special items, of $44.7 million or $0.76 per diluted Class A share for the fourth quarter of 2015. The net income for the fourth quarter of 2016 was significantly impacted by the changes in income tax expense as described below.
- Net sales decreased $0.9 million to $867.6 million compared to $868.5 million for the fourth quarter of 2015. Net sales, after adjusting for the effect of divestitures for both quarters and currency translation for the fourth quarter of 20163, increased 5.3 percent compared to the fourth quarter 2015.
- Gross profit improved to $183.4 million compared to $168.0 million for the fourth quarter of 2015. Gross profit margin improved to 21.1 percent from 19.3 percent for the fourth quarter of 2015.
- Operating profit improved $21.5 million and operating profit before special items improved $15.0 million from the fourth quarter of 2015. Operating profit margin before special items improved to 10.0 percent compared to 8.3 percent for the fourth quarter of 2015.
- Cash provided by operating activities increased $10.1 million compared to the fourth quarter of 2015. Free cash flow improved $9.0 million compared to the fourth quarter of 2015.
- Income tax expense for the fourth quarter of 2016 increased to $28.3 million, or 81.3 percent, from $2.6 million, or 23.0 percent, for the fourth quarter 2015, due primarily to the impact of discrete losses in jurisdictions for which there is minimal tax benefit, adjustments to uncertain tax position estimates, withholding tax expense on fourth quarter transactions and corrections identified through enhanced control procedures executed during the quarter. In addition, the fourth quarter of 2015 tax expense was positively impacted by discrete transactions which resulted in one-time tax benefits.