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Can Renewable Energy Group (REGI) Keep the Earnings Streak Alive This Quarter?

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Renewable Energy Group, Inc.REGI , a firm in the Biofuels industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, REGI has beaten estimates by at least 20% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, REGI expected to post earnings of 50 cents per share, while it actually produced 79 cents per share, a beat of 58.0%. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 53 cents per share, when it actually saw a loss of 41 cents, representing a 22.6% positive surprise.

Renewable Energy Group, Inc. Price and EPS Surprise

Renewable Energy Group, Inc. Price and EPS Surprise | Renewable Energy Group, Inc. Quote

Thanks in part to this history, recent estimates have been moving higher for Renewable Energy Group. In fact, the Earnings ESP for REGI is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for REGI, as the firm currently has a Zacks Earnings ESP of 275.00%, so another beat could be around the corner.

This is particularly true when you consider that REGI has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. You can see the complete list of today's Zacks #1 Rank stocks here .

When you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that REGI could see another beat at its next report, especially if recent trends are any guide.

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Renewable Energy Group, Inc. (REGI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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