Rentech Earnings: Here’s Why Investors are Happy Now

Rentech, Inc. (AMEX:RTK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.53%.

Rentech, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 250% to $0.14 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 69.99% to $120.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rentech, Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $141.49 million.

Quoting Management: D. Hunt Ramsbottom, President and CEO of Rentech, said, “Our financial results for the quarter demonstrate the dramatic transformation we have undertaken at Rentech. Our new business at the parent, which is wood fibre processing, generated positive EBITDA, and we had no R&D expenditures this quarter. Our focus is now on opportunities with attractive returns within the wood fibre processing and nitrogen fertilizer segments, as we continue our low-cost efforts to monetize our energy technologies.” Mr. Ramsbottom continued, “Demand for nitrogen remains healthy although results for the quarter in that business were affected by the delayed and abbreviated spring application period and softer nitrogen prices.”

Key Stats (on next page)…

Revenue increased 101.44% from $59.67 million in the previous quarter. EPS increased to $0.14 in the quarter versus EPS of $-0.02 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.02 and has not changed. For the current year, the average estimate is a profit of $0.07, which is the same with that ninety days ago.

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