Green Plains Renewable Energy Earnings: Here’s Why Investors are Ambivalent Now

Green Plains Renewable Energy, Inc. (NASDAQ:GPRE) 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.

Green Plains Renewable Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.19 in the quarter versus EPS of $-0.25 in the year-earlier quarter.

Revenue: Decreased 7.54% to $804.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Green Plains Renewable Energy, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.17. It beat the average revenue estimate of $771.43 million.

Quoting Management: “We are pleased to report another quarter of profitability with each of our business segments providing a positive contribution,” stated Todd Becker, President and Chief Executive Officer. “Our ethanol production segment capitalized on an improved margin environment while each of our non-ethanol businesses delivered a solid performance as well. As a result, operating income improved nearly $20 million over last year’s second quarter.”

Key Stats (on next page)…

Revenue increased 5.12% from $765.48 million in the previous quarter. EPS increased 137.5% from $0.08 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 profit of $0.12 to a profit $0.24. For the current year, the average estimate has moved up from a profit of $0.47 to a profit of $0.83 over the last ninety days.

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