What is the expected effect of the containerboard business sale on Greif's earnings and cash generation?

The completion of Greif’s $ ≈ $ 500 million container‑board divestiture will generate a sizeable, non‑recurring cash infusion that immediately bolsters the balance sheet and net cash flow. In the quarter of the sale the company will book a one‑time gain (the difference between the sale price and the book value of the disposed assets) that should lift reported earnings per share above the consensus baseline. However, going forward the earnings contribution from the containerboard segment—roughly 5‑7 % of Greif’s total revenue in recent years—will be stripped out, so normalized operating earnings will dip modestly once the “sale‑gain” line expires.

From a trading perspective the market has already priced in a modest upside (the sentiment score of 30 reflects a mildly positive view). The stock is likely to trade near the recent breakout level on the daily chart (≈ $ 16.20) with the headline‑driven volume spike offering a short‑term buying opportunity on a pull‑back to the 20‑day moving average. Investors should monitor how management allocates the proceeds—debt reduction or strategic acquisitions—because a clear capital‑deployment plan will reinforce the earnings tail‑wind and sustain the cash‑generation boost. In the near term, a long position with a stop just below the 20‑day MA (~$ 15.70) and a target near the prior high (~$ 17.10) aligns with the expected positive earnings impact and improved liquidity profile.