(GEF) - Profits for the quarter came in at $1.03 per share, beating the Street by 18.4%

Greif, Inc. (GEF) exceeded analysts' earnings expectations in the past three quarters by an average margin of 14.3%. The company recently posted record second-quarter net sales and upped its earnings per share guidance for fiscal 2006. The Board of Directors boosted its quarterly dividend by 50% in late-May. This Zacks #1 Rank stock is currently yielding 2.1% and has a five-year average dividend yield of 1.7%. Full Analysis Greif, Inc. is engaged in the manufacture and sale of industrial packaging products, and containerboard and corrugated products worldwide. The company has over 160 operating locations in more than 40 countries. When GEF reported second-quarter fiscal 2006 results on May 31, 2006, it marked the third straight quarter in which the company topped analysts' expectations. Profits for the quarter came in at $1.03 per share, beating the Street by 18.4% and soaring past earnings in the prior-year period by 27.2%. The average margin of surprise over the past three quarters amounted to 14.3%. Net sales hit an all-time high—$620.1 million, compared to $613.0 million in the second quarter of fiscal 2005. GEF increased revenues for the past nine years, while expanding gross margins and growing profits for the past two. For the first six months of fiscal 2006, all three were up when compared to the first half of fiscal 2005. Due to higher sales volumes and improved margins during the first half of fiscal 2006, GEF upped its fiscal 2006 earnings per share outlook. The company now expects profits between $3.85 and $3.95 per share. Its previous forecast called for earnings per share between $3.55 and $3.65, which also reflected an upward revision. Over the next 3-5 years, EPS are projected to grow 10.0%—in line with the forecasted growth rate of the industry. On May 30, 2006, the Board of Directors at GEF approved a 50% increase in the company's quarterly dividends. Owners of Class A Common Stock received a cash dividend of 36 cents per share, while Class B paid 54 cents per share. This represented the second straight year that GEF bumped its dividends by 50%. The company is currently yielding 2.1% and has a five-year average dividend yield of 1.7%. Chief Operating Officer and President of GEF, William B. Sparks Jr., is retiring effective Oct 31, 2006. He served at his current post since 2001 and has been with the company for 29 years. The company stated it does not have a timetable to find a replacement. It remains to be seen how his retirement will affect the long-term prospects of GEF. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home