Originally Posted by
FBinNY
It isn't rare for brand new (or newly serviced) pedals, hubs and other bearings to eject some excess grease when first placed in service. The bearings can be over packed at assembly, and the rolling action of the balls pushes the grease to either side, with some working it's way out. Simply use a paper towl to wipe the bead off and you'll be fine. It may continue to weep for a short while needing another wipe or two, but then it's done and good to go for miles.
+2 I intentionally overpack grease in my hub, headset and pedal bearings and, yes the excess does ooze out for the first ride or two afterwards. However, the extra grease makes a decent seal and reduces the opportunity for water and dirt to get inside the bearings. Grease oozing out is better than crud oozing in.