Greif, Inc. GEF announced that it opened a facility in Pasir Gudang, Johor This move will help the company expand its business in Johor while staying committed to delivering high-quality packaging solutions.
New Facility to Enhance Greif’s Capabilities
The company's new factory in Pasir Gudang produces Intermediate Bulk Containers , which are utilized in a variety of industries, including food, chemicals, lubricants, flavors and fragrances. The Johor facility employs cutting-edge manufacturing technologies, such as blow molding and cage line technology, to ensure that production fulfills Greif's quality and sustainability requirements.
Johor has a robust infrastructure, which will further help Greif. The company expects the facility to contribute to the region’s growth by creating job opportunities.
GEF’s Recent Investments
Greif has recently been active on its investment front to expand its geographic reach. In March 2024, the company closed the acquisition of IPACKCHEM, which is a global leader in premium barrier and non-barrier jerry cans and small plastic containers. The acquisition is expected to be immediately accretive to Greif’s EBITDA margin and free cash flow.
In October 2023, the company acquired Reliance Products, a leading producer of high-performance barrier and conventional blow-molded jerrycans and small plastic containers in Canada. Reliance Products utilize a unique in-mold fluorination barrier process, which provides a compelling additional capability to the Greif portfolio of barrier technologies.
GEF Q3 Performance
Greif reported adjusted earnings per share (EPS) of $1.03 in third-quarter fiscal 2024 (ended July 31, 2024), missing the Zacks Consensus Estimate of $1.17. The bottom line fell 41.1% year over year.
GEF’s sales moved up 9.3% year over year to $1.45 billion. The top line surpassed the Zacks Consensus Estimate of $1.42 billion. The upside was mainly due to increased volumes, higher average selling prices and gains from recent acquisitions.
GEF Q4 Estimates
The Zacks Consensus Estimate for GEF’s fourth-quarter fiscal 2024 earnings is pegged at $1.07 per share. The company reported an EPS of $$1.56 in the prior-year quarter. The Zacks Consensus Estimate for revenues is pegged at $1.42 billion, indicating growth of 8.4% from that reported in the prior-year quarter.
Greif’s Share Price Performance
The company’s shares have lost 11.5% in the past year against the industry’s growth of 23.1%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GEF currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Crane Company CR, Flowserve Corporation FLS and Cintas Corporation CTAS. These three companies have a Zacks Rank #2 (buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Crane’s 2024 earnings is pegged at $5.07 per share. The consensus estimate for 2024 earnings has moved 6% north in the past 60 days. The company has a trailing four-quarter average earnings surprise of 11.2%. CR shares have gained 75.2% in a year.
Flowserve has an average trailing four-quarter earnings surprise of 18.2%. The Zacks Consensus Estimate for FLS’s 2024 earnings is pinned at $2.76 per share, which indicates year-over-year growth of 31.6%. The consensus estimate for 2024 earnings has moved 4% north in the past 60 days. The company’s shares have gained 27.5% in a year.
The Zacks Consensus Estimate for Cintas’ 2024 earnings is pegged at $16.64 per share. The consensus estimate for 2024 earnings has moved north by 1% in the past 60 days. The company has a trailing four-quarter average earnings surprise of 4%. CTAS shares have gained 60.4% in a year.
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