NEW YORK (TheStreet) -- Shares of Greif (GEF - Get Report) are down by -5.51% to $47.53 at the start of trading on Monday, after the packaging company cut its fiscal 2014 earnings per share guidance to $1.98 to $2.08, from its previous forecast of $2.48 to $2.80 per share.
Greif said extra restructuring charges led to the decrease in its earnings expectations.
The company will release its 2014 third-quarter financial results on Wednesday, Aug 27 after the market closes.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 7.2%. Since the same quarter one year prior, revenues slightly increased by 1.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Even though the current debt-to-equity ratio is 1.09, it is still below the industry average, suggesting that this level of debt is acceptable within the Containers & Packaging industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.72 is weak.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Containers & Packaging industry and the overall market, GREIF INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- GREIF INC's earnings per share declined by 11.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GREIF INC increased its bottom line by earning $3.10 versus $2.58 in the prior year. For the next year, the market is expecting a contraction of 6.5% in earnings ($2.90 versus $3.10).
- You can view the full analysis from the report here: GEF Ratings Report