On Mar 28, 2014, Zacks Investment Research downgraded
) to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold).
Why the Downgrade
Greif's estimates underwent sharp downward revisions following
its weak first-quarter fiscal 2014 earnings and fiscal 2014
guidance reported on Feb 27. Although Greif's adjusted earnings
improved 11% year over year to 44 cents per share in the quarter,
it missed the Zacks Consensus Estimate of 53 cents.
Record first-quarter results from the Paper Packaging segment
were overshadowed by the adverse impact of weather conditions in
North America and currency devaluations which impacted Greif's
Latin American operations in Brazil, Argentina and Venezuela as
well as its Middle Eastern and South African operations.
For fiscal 2014, Greif anticipates a gradual global economic
recovery, which should result in moderate sales and volume
improvement. Raw material costs are expected to be higher. Greif
is planning to implement additional restructuring activities for
its underperforming operations. This will result in restructuring
charges of approximately $25 million. Furthermore, foreign
exchange volatility as well as social and political unrest
The company, thus witnessed downward estimate revisions which led
to the rank downgrade. Over the last 30 days, 5 out of 7
estimates for 2014 have gone down with the Zacks Consensus
Estimate moving down a penny to $3.09 per share for 2014.
Other Stocks to Consider
Some better-performing stocks in the industry that are worth a
Packaging Corporation of America
Bemis Company, Inc.
). While Ball Corporation and Packaging Corporation sport a Zacks
Rank #1 (Strong Buy), Bemis carries a Zacks Rank #2 (Buy).
BALL CORP (BLL): Free Stock Analysis Report
BEMIS (BMS): Free Stock Analysis Report
GREIF INC (GEF): Free Stock Analysis Report
PACKAGING CORP (PKG): Free Stock Analysis
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