On Thursday, Stifel, a financial services firm, maintained a positive stance on Greif Inc. (NYSE:GEF), reiterating a Buy rating with an $88.00 price target. The company's second quarter of 2024 results showcased better-than-expected revenue and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA). Greif also reported positive year-over-year volume growth in both its Global Industrial Packaging (NYSE:PKG) (GIP) and Paper Packaging & Services (PPS) for the first time since the first quarter of 2022.
Greif has raised its full-year 2024 guidance to a range of $675 million to $725 million, with a midpoint of $700 million. This updated forecast marks a significant 14.8% increase from the initial first quarter guidance of $610 million and surpasses the consensus estimate of $662 million. The company's improved outlook reflects a robust performance and a favorable shift in market dynamics.
Additionally, Greif announced that it will implement a price increase ranging from $50 to $70 per ton for all grades of uncoated recycled board (URB) products. This change is set to take effect on July 8, 2024. According to industry resource RISI, if the market fully accepts these price adjustments, it could potentially provide additional upside to the company's financial performance for the fiscal year 2024.
The second quarter results for 2024 signify the first indications of a cyclical upturn in market demand across both the GIP and PPS segments. Greif's performance and proactive strategies appear to position the company favorably in the eyes of Stifel analysts as they anticipate continued growth.
In other recent news, Greif, Inc. reported a mixed bag of results for the first quarter of 2024. The company's revenue reached $1.37 billion, surpassing the consensus estimate of $1.3 billion. However, the adjusted earnings per share (EPS) of $0.82 fell short of the analyst consensus of $0.85 by $0.03. Net income saw a significant decline, dropping 60.1% to $44.4 million, or $0.77 per diluted Class A share, from the previous year. Adjusted EBITDA also experienced a downturn, decreasing 25.7% to $169.9 million compared to the same period in 2023.
These recent developments also include the completion of the Ipackchem acquisition, as highlighted by Greif's CEO, Ole Rosgaard. For the fiscal 2024 outlook, the company is projecting adjusted EBITDA to be between $675 million and $725 million, and adjusted free cash flow to be in the range of $175 million to $225 million. Lastly, the Board of Directors declared quarterly cash dividends of $0.52 per share of Class A Common Stock and $0.78 per share of Class B Common Stock, payable in July 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.