Gevo Inc Up 8.1% To $1.17 After Earnings Miss

Tuesday, November 14, 2023 - Gevo Inc (GEVO) reported downside earnings and upside revenues.

Wall Street earnings per share (EPS) projections for Gevo Inc were at a loss of $0.05 per share. The company missed those estimates with an EPS loss of $0.07 per share. The loss of $0.07 per share (which represents a -40% EPS surprise) led to the company's profits rising 63% compared to last year when the firm reported an EPS loss of $0.19 per share. The increase in Gevo Inc's annual growth rate represents how the business is performing well amid recent economic conditions.

Consensus analyst estimates were at $4.1 million. The Basic Materials company managed to surpass those expectations for its third quarter with revenue of $4.5 million, a positive revenue surprise of $428 thousand (10%). The firm managed 1365% growth year-over-year due to Gevo Inc reporting quarterly revenue of $309 thousand in its year-ago quarter. Gevo Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 8.1% to $1.17 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Gevo Inc a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 41. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment, Renewable Natural Gas Segment, Net-Zero Segment and the Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel. Gevo Development/Agri-Energy is the key revenue-generating segment that involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.