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What's in Store for Renewable Energy Group (REGI) Q1 Earnings?
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Renewable Energy Group, Inc. is scheduled to release first-quarter 2020 earnings on Apr 30, after market close. In the trailing four quarters, the company came up with a positive earnings surprise of 1,379.7%, on average.
Let's take a closer look at the factors that are likely to have impacted the company’s performance.
Factors to Consider
The outbreak of COVID-19 in the United States has massively dented the economy in the last phase of the first quarter, which is likely to have affected Renewable Energy Group’s first-quarter performance. In particular, the supply chain for its German operations has been negatively impacted, as it involves the requirement of used cooking oil from China.
Moreover, in the fourth quarter earning's call, the company forecasted the sales of fuel gallons to witness a decline in the first quarter of 2020 compared with the year-ago quarter. This is primarily due to lower volumes of heating oil sold in the northeast, as a result of a historically warm winter in the region.
Also, during the quarter, Renewable Energy Group had to cancel a project with Phillips 66 due to permitting delays, increasing costs and uncertainties. This came as a heavy setback as the company was eyeing to earn tax credits from fuel generation. Impacts from this project’s cancellation are likely to get reflected in the company's quarterly performance.
Q1 Expectations
The Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 91 cents. The Zacks Consensus Estimate for first-quarter sales is pegged at $477 million, which suggests a marginal decline of 0.2% from the year-ago quarter’s reported figure.
Renewable Energy Group, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Renewable Energy Group this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider from the same sector, as our model shows that these have the right combination of elements to post an earnings beat this season.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +20.51% and a Zacks Rank #2. The company is expected to report first-quarter 2020 results on May 1.
Peabody Energy Corporation (BTU - Free Report) has an Earnings ESP of +14.75% and a Zacks Rank #3. The company is scheduled to report first-quarter 2020 results on Apr 29.
Clearway Energy (CWEN - Free Report) has an Earnings ESP of +209.09% and a Zacks Rank #3. The company is scheduled to report first-quarter 2020 results on Apr 29.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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What's in Store for Renewable Energy Group (REGI) Q1 Earnings?
Renewable Energy Group, Inc. is scheduled to release first-quarter 2020 earnings on Apr 30, after market close. In the trailing four quarters, the company came up with a positive earnings surprise of 1,379.7%, on average.
Let's take a closer look at the factors that are likely to have impacted the company’s performance.
Factors to Consider
The outbreak of COVID-19 in the United States has massively dented the economy in the last phase of the first quarter, which is likely to have affected Renewable Energy Group’s first-quarter performance. In particular, the supply chain for its German operations has been negatively impacted, as it involves the requirement of used cooking oil from China.
Moreover, in the fourth quarter earning's call, the company forecasted the sales of fuel gallons to witness a decline in the first quarter of 2020 compared with the year-ago quarter. This is primarily due to lower volumes of heating oil sold in the northeast, as a result of a historically warm winter in the region.
Also, during the quarter, Renewable Energy Group had to cancel a project with Phillips 66 due to permitting delays, increasing costs and uncertainties. This came as a heavy setback as the company was eyeing to earn tax credits from fuel generation. Impacts from this project’s cancellation are likely to get reflected in the company's quarterly performance.
Q1 Expectations
The Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 91 cents. The Zacks Consensus Estimate for first-quarter sales is pegged at $477 million, which suggests a marginal decline of 0.2% from the year-ago quarter’s reported figure.
Renewable Energy Group, Inc. Price and EPS Surprise
Renewable Energy Group, Inc. price-eps-surprise | Renewable Energy Group, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Renewable Energy Group this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Renewable Energy Group has an Earnings ESP of 0.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies you may want to consider from the same sector, as our model shows that these have the right combination of elements to post an earnings beat this season.
Southwestern Energy Company (SWN - Free Report) has an Earnings ESP of +20.51% and a Zacks Rank #2. The company is expected to report first-quarter 2020 results on May 1.
Peabody Energy Corporation (BTU - Free Report) has an Earnings ESP of +14.75% and a Zacks Rank #3. The company is scheduled to report first-quarter 2020 results on Apr 29.
Clearway Energy (CWEN - Free Report) has an Earnings ESP of +209.09% and a Zacks Rank #3. The company is scheduled to report first-quarter 2020 results on Apr 29.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>