FutureFuel Earnings: Here’s Why the Stock is Rising Now

FutureFuel Corp (NYSE:FF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.06%.

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FutureFuel Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 94.12% to $0.33 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 7.55% to $92.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.19. It beat the average revenue estimate of $82.25 million.

Quoting Management: “Our reported results from operations for the first three months of 2013 saw a strong improvement from those in the first three months of 2012. A meaningful proportion of this improvement, however, was attributable to non-recurring items, such as approximately $2.5 million of pre-tax income we recognized in the first three months of 2013 related to the retroactive reinstatement of the 2012 $1.00 biodiesel blenders tax credit and reduced income tax expense of $1.5 million on a pretax basis resulting from the retroactive reinstatement of the 2012 small agri-biodiesel production tax credit,” said Lee Mikles, FutureFuel president. “Even after adjusting for these items, however, the results from our first quarter were encouraging. With the support of the blenders credit, biodiesel margins improved over the fourth quarter of 2012 and our chemicals segment delivered a solid performance. We are thankful that our legislators in early 2013 demonstrated their support for biodiesel through the retroactive reinstatement of the tax credits which play an important role in the biodiesel industry, our nation’s energy supply, and in our national employment.”

Key Stats (on next page)…

Revenue increased 23.61% from $74.59 million in the previous quarter. EPS increased 120% from $0.15 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $1 to a profit of $0.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)