Greif, Inc. Class A (NYSE: GEF) stock lost over 10.1% on 27th August, 2020 (as of 10:40 am GMT-4; Source: Google finance) after the company posted lower than expected results for the third quarter of FY 20 driven by soft industrial conditions around much of the global portfolio and by a significant price/cost squeeze in the paper business. The company for the third quarter of FY 20 has delivered the adjusted Net income of $50.1 million, which reflects the decrease compared from net income of $74.7 million. Adjusted EBITDA also decreased by $44.4 million to $159.4 million during the third quarter. GEF in the third quarter of FY 20 has reported the adjusted earnings per share of 85 cents, missing the analysts’ estimates for the adjusted earnings per share of 86 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.08 billion in the third quarter of FY 20, missing the analysts’ estimates for revenue by 3.79%.
Total debt fell by $240.9 million to $2,637.6 million during the period. Net debt has fallen by $263.6 million to $2,539 .1 million and decreased $70.8 million sequentially from the second quarter of 2020.
Moreover, Rigid Industrial Packaging & Services’ net sales fell by $93.6 million to $548.5 million due to demand softness and lower average sale prices mainly due to contractual price adjustment mechanisms related to raw material price decreases. Paper Packaging & Services’ net sales fell by $70.7 million to $459.3 million mainly due to approximately $54.0 million of prior year net sales attributable to the divested Consumer Packaging Group business, lower published containerboard and boxboard prices, and lower volumes. Flexible Products & Services’ net sales fell by $5.2 million to $69.3 million.
Additionally, the company has declared quarterly cash dividends of $0.44 per share of Class A Common Stock and $0.66 per share of Class B Common Stock. Dividends will be paid on October 1, 2020 , to stockholders of record at the close of business on September 17, 2020 .
For the third quarter of fiscal 2021, the company expects Class A earnings per share before adjustments to be in the range of $3.00 – $3.20 and Adjusted free cash flow is expected to be in the range of $260 – $290.