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Greif Declared Quarterly Dividends

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Price movement

Greif (GEF) has a market cap of $2.8 billion. It fell 1.2% to close at $52.98 per share on December 6, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.5%, 14.0%, and 78.1%, respectively, on the same day. GEF is trading 0.12% above its 20-day moving average, 6.5% above its 50-day moving average, and 32.9% above its 200-day moving average.

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Related ETF and peers

The Vanguard Small-Cap ETF (VB) invests 0.03% of its holdings in Greif. The YTD price movement of VB was 18.5% on December 6.

The market caps of Greif’s competitors are as follows:

  • International Paper (IP): $21.3 billion
  • Sonoco Products (SON): $5.4 billion
  • Silgan Holdings (SLGN): $2.7 billion

Greif declared dividend

Greif has declared quarterly cash dividends of $0.42 per share and $0.62 per share on its Class A and Class B common stock, respectively. The dividends will be paid on January 1, 2017, to shareholders of record at the close of business on December 19, 2016.

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Greif 3Q16 performance

Greif reported 3Q16 net sales of $845.0 million, a fall of 9.1% compared to its net sales of $930.0 million in 3Q15. Net sales from the company’s Rigid Industrial Packaging & Services, Paper Packaging & Services, and Flexible Products & Services segments fell 10.8%, 2.4%, and 11.7%, respectively, compared to 3Q15. Sales from its Land Management segment rose 13.7% in 3Q16 compared to 3Q15.

The net income and EPS (earnings per share) of Greif’s Class A stock and the EPS of Greif’s Class B stock rose to $46.1 million, $0.78, and $1.18, respectively, in 3Q16, compared to $8.6 million, $0.15, and $0.22, respectively, in 3Q15.

The company reported consolidated EBITDA[1. earnings before interest, tax, depreciation, and amortization] of $101.2 million in 3Q16, a rise of 29.7% compared to 3Q15. GEF’s cash and cash equivalents and inventories fell 11.2% and 2.9%, respectively, in 3Q16 compared to 4Q15.

Projections

Greif made the following projections for 2016:

  • Class A EPS before special items in the range of $2.36–$2.56
  • capital expenditure in the range of $95 million–$110 million
  • free cash flow in the range of $160 million–$190 million

In the next part, we’ll look at J.M. Smucker (SJM).

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