Renewable Energy Group Earnings: Here’s Why Shares are Up Now
(:REGI) delivered a profit and met 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 2.43%.
Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 58.97% to $0.62 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Rose 42.35% to $387.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.62 per share. By that measure, the company missed the mean analyst estimate of $0.62. It beat the average revenue estimate of $303.39 million.
Quoting Management: “This was our strongest quarter ever for production and gallons sold,” said Daniel J. Oh, President and Chief Executive Officer. “Market demand for biodiesel remained strong due, in part, to demand for biomass-based diesel RINs. REG’s substantial revenue growth this quarter can also be attributed to manufacturing and operational improvement at our biorefineries and gallons produced via a tolling agreement.”
Key Stats (on next page)…
Revenue increased 14.09% from $339.28 million in the previous quarter. EPS decreased 50.4% from $1.25 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 $0.4 to a profit $0.47. For the current year, the average estimate has moved up from a profit of $1.28 to a profit of $2.84 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)