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Market Overview

Gevo Earnings Preview

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Gevo (NASDAQ:GEVO) announces its next round of earnings this Wednesday, March 17. Here is Benzinga's look at Gevo's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts are expecting Gevo to report a loss of $0.05 per share. Revenue will likely be around $750.00 thousand, according to the consensus estimate. In the same quarter last year, Gevo reported a loss per share of $0.5 on sales of $6.89 million.

Why Analyst Estimates And Earnings Surprises Are Important

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.

See also: How to Buy Gevo Inc. (GEVO) Stock

The Wall Street estimate would represent a 90.0% increase in the company's earnings. Sales would be down 89.11% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.10 -0.25 -0.44 -0.53
EPS Actual -0.08 -0.39 -0.59 -0.50
Revenue Estimate 720.00 K 470.00 K 6.30 M 6.70 M
Revenue Actual 192.00 K 988.00 K 3.83 M 6.89 M

Stock Performance

Shares of Gevo were trading at $9.89 as of March 15. Over the last 52-week period, shares are up 962.73%. Given that these returns are generally positive, long-term shareholders should be content 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: BZI-EPEarnings