Market Overview

Gevo's Earnings Outlook

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On Tuesday, November 10, Gevo (NASDAQ: GEVO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Gevo's per-share loss will be near $0.1 on sales of $720.00 thousand, according to Wall Street analysts. In the same quarter last year, Gevo reported EPS of $0.66 on revenue of $6.11 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be up 84.85%. Sales would be down 88.22% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.25 -0.44 -0.53 -0.55
EPS Actual -0.39 -0.59 -0.50 -0.66
Revenue Estimate 470.00 K 6.30 M 6.70 M 4.77 M
Revenue Actual 988.00 K 3.83 M 6.89 M 6.11 M

Stock Performance

Over the past 52-week period, shares of Gevo have declined 56.66%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Gevo is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings