Potential Earnings Beat: A Look at Greif's Upcoming Quarterly Report

Investors often seek out stocks that have a history of outperforming earnings estimates in hopes of capturing some of that success in their own portfolios. One such company to watch is Greif (GEF), an industrial packaging organization with a notable track record in this area. Operating within the Containers - Paper and Packaging sector, Greif has consistently beaten its earnings projections, particularly in its last two financial reports.

Demonstrated Earnings Superiority

Greif has established a reputation for significantly surpassing earnings expectations. In its most recent quarters, the company exceeded estimates by an impressive average of 277.50%. Specifically, for the last reported quarter, it achieved earnings of $1.27 per share versus the anticipated $0.20 per share — a substantial 535% surprise. In the quarter prior to that, expectations were set at $1.30 per share, and Greif surpassed this by earning $1.56 per share, a 20% surprise.

The Power of Earnings Estimates

The recent trend in earnings estimates for Greif has been positive, reflecting a growing optimism among analysts. A key metric in forecasting earnings performance is the Zacks Earnings ESP (Expected Surprise Prediction), which Greif is currently showing in a positive light. A positive Earnings ESP, coupled with a favorable Zacks Rank, often heralds an upcoming earnings beat.

Traditionally, a mix of a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better has been a strong indicator of an earnings beat, with about 70% accuracy. Greif boasts an Earnings ESP of +3.37%, and with a Zacks Rank of #1 (Strong Buy), the indicators suggest that the company might outdo earnings forecasts in its next report, projected for release on June 5, 2024.

It's worth noting, however, that a negative Earnings ESP does not guarantee a stock's earnings miss, just as a positive ESP is not a definitive signal of an earnings beat. Nevertheless, the Earnings ESP is a useful tool for investors trying to improve their chances of investing success.

As the earnings date approaches, checking a company’s Earnings ESP can be beneficial. While not the only factor to consider, it offers investors a data-driven insight into the potential for a stock to exceed expectations.

Earnings, Analysis, Stocks