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What's in Store for Renewable Energy Group (REGI) Q2 Earnings?

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Renewable Energy Group, Inc. is set to report second-quarter 2020 financial results on Aug 4, after market close. In the last reported quarter, the company delivered an earnings surprise of 89.01%.

In the trailing four quarters, Renewable Energy Group came up with a massive earnings surprise of 1,416.6%, on average.

Let's take a closer look at the factors influencing the company’s upcoming quarterly results.

Factors to Consider  

Gallons of biodiesel sold by Renewable Energy Group in April and May exceeded the original guidance by 7.2 million. Considering this, on Jun 23, the company announced that it expects gallons sold in the second quarter to modestly exceed the previously stated forecast of 155-175 million gallons. This might have aided its second-quarter revenues.

However, lower average selling price and absence of blended volumes associated with its New Boston bio refinery that Renewable Energy Group had closed in July 2019 might have weighed on the company’s top-line performance.

Currently, the Zacks Consensus Estimate for second-quarter revenues, pegged at $503 million, reflects a 10.3% decline from the year-ago quarter’s tally.

In the company’s revised outlook for the second quarter of 2020, Renewable Energy Group has estimated risk management losses of $8 million quarter-to-date through Jun 22, 2020. This initially was supposed to be $8 million of risk-management gains. Such losses are likely tohave dragged down the company’s bottom line in the soon-to-be-reported quarter.

Currently, the Zacks Consensus Estimate for the company's second-quarter loss is pegged at 35 cents per share.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Renewable Energy Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: Renewable Energy Group has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Renewable Energy Group, Inc. Price and EPS Surprise

Investors can also consider the following players from the same sector that have the right combination of elements to post an earnings beat this season.

Bonanza Creek Energy, Inc. is set to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +13.66% and a Zacks Rank #1.

Gevo Inc. (GEVO - Free Report) is set to release second-quarter 2020 results on Aug 10. It has an Earnings ESP of +40.00% and a Zacks Rank #2.

A Recent Sector Release

Bloom Energy Corporation (BE - Free Report) reported a second-quarter 2020 loss of 38 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents.

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