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GEVO Gears Up to Report Q4 Earnings: What's in the Cards?
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Gevo, Inc. (GEVO - Free Report) is set to report fourth-quarter 2020 results on Mar 17, after market close. In the last reported quarter, the company delivered an earnings surprise of 11.11%.
However, in the trailing four quarters, Gevo came up with a negative earnings surprise of 39.47%, on average.
Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.
Factors to Consider
Owing to COVID-19 impacts and unfavorable commodity environment, Gevo terminated its production of ethanol and distiller’s grains in March 2020 at the Luverne facility, which has been hurting its top line performance since then. The company also suspended ethanol production at its Luverne facility. We expect its fourth-quarter sales to have also suffered due to the absence of these product lines.
Notably, the Zacks Consensus Estimate for Gevo’s fourth-quarter revenues, pegged at $0.76 million, indicates a 89% decline from the year-ago quarter’s reported figure.
While termination of ethanol and distiller’s grains must have hampered the company’s top line performance, cost of production is expected to have reduced in the fourth quarter. This is likely to have benefited its quarterly gross profit, thereby bolstering its bottom-line performance.
Moreover, to restrict huge cash burn, Gevo has been reducing its workforce, which, in turn must have reduced its personnel expenses. This is also expected to have benefited the company’s earnings in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 4 cents indicating an improvement from the year-ago quarter’s loss of 50 cents.
Earnings Whispers
Our proven model predicts an earnings beat for Gevo 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.
Earnings ESP: Gevo has an Earnings ESP of +25.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TC Energy’s (TRP - Free Report) fourth-quarter 2020 adjusted earnings of 88 cents per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s figure of 78 cents.
First Solar (FSLR - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.08 per share, which missed the Zacks Consensus Estimate of $1.27 by 15%.
Covanta Holding reported earnings of 9 cents per share for fourth-quarter 2020, surpassing the Zacks Consensus Estimate of a cent by 800%.
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GEVO Gears Up to Report Q4 Earnings: What's in the Cards?
Gevo, Inc. (GEVO - Free Report) is set to report fourth-quarter 2020 results on Mar 17, after market close. In the last reported quarter, the company delivered an earnings surprise of 11.11%.
However, in the trailing four quarters, Gevo came up with a negative earnings surprise of 39.47%, on average.
Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.
Factors to Consider
Owing to COVID-19 impacts and unfavorable commodity environment, Gevo terminated its production of ethanol and distiller’s grains in March 2020 at the Luverne facility, which has been hurting its top line performance since then. The company also suspended ethanol production at its Luverne facility. We expect its fourth-quarter sales to have also suffered due to the absence of these product lines.
Gevo, Inc. Price and EPS Surprise
Gevo, Inc. price-eps-surprise | Gevo, Inc. Quote
Notably, the Zacks Consensus Estimate for Gevo’s fourth-quarter revenues, pegged at $0.76 million, indicates a 89% decline from the year-ago quarter’s reported figure.
While termination of ethanol and distiller’s grains must have hampered the company’s top line performance, cost of production is expected to have reduced in the fourth quarter. This is likely to have benefited its quarterly gross profit, thereby bolstering its bottom-line performance.
Moreover, to restrict huge cash burn, Gevo has been reducing its workforce, which, in turn must have reduced its personnel expenses. This is also expected to have benefited the company’s earnings in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 4 cents indicating an improvement from the year-ago quarter’s loss of 50 cents.
Earnings Whispers
Our proven model predicts an earnings beat for Gevo 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.
Earnings ESP: Gevo has an Earnings ESP of +25.00%. 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.
Recent Sector Releases
TC Energy’s (TRP - Free Report) fourth-quarter 2020 adjusted earnings of 88 cents per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s figure of 78 cents.
First Solar (FSLR - Free Report) reported fourth-quarter 2020 adjusted earnings of $1.08 per share, which missed the Zacks Consensus Estimate of $1.27 by 15%.
Covanta Holding reported earnings of 9 cents per share for fourth-quarter 2020, surpassing the Zacks Consensus Estimate of a cent by 800%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>