What's in Store for Renewable Energy Group (REGI) Q2 Earnings?

Renewable Energy Group, Inc. REGI is set to report second-quarter 2020 financial results on Aug 4, after market close. In the last reported quarter, the company delivered an earnings surprise of 89.01%.

In the trailing four quarters, Renewable Energy Group came up with a massive earnings surprise of 1,416.6%, on average.

Let's take a closer look at the factors influencing the company’s upcoming quarterly results.

Factors to Consider  

Gallons of biodiesel sold by Renewable Energy Group in April and May exceeded the original guidance by 7.2 million. Considering this, on Jun 23, the company announced that it expects gallons sold in the second quarter to modestly exceed the previously stated forecast of 155-175 million gallons. This might have aided its second-quarter revenues.

However, lower average selling price and absence of blended volumes associated with its New Boston bio refinery that Renewable Energy Group had closed in July 2019 might have weighed on the company’s top-line performance.

Currently, the Zacks Consensus Estimate for second-quarter revenues, pegged at $503 million, reflects a 10.3% decline from the year-ago quarter’s tally.

In the company’s revised outlook for the second quarter of 2020, Renewable Energy Group has estimated risk management losses of $8 million quarter-to-date through Jun 22, 2020. This initially was supposed to be $8 million of risk-management gains. Such losses are likely tohave dragged down the company’s bottom line in the soon-to-be-reported quarter.

Currently, the Zacks Consensus Estimate for the company's second-quarter loss is pegged at 35 cents per share.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Renewable Energy Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: Renewable Energy Group has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Renewable Energy Group, Inc. Price and EPS Surprise

Renewable Energy Group, Inc. Price and EPS Surprise

Renewable Energy Group, Inc. price-eps-surprise | Renewable Energy Group, Inc. Quote

Stocks to Consider

Investors can also consider the following players from the same sector that have the right combination of elements to post an earnings beat this season.

Bonanza Creek Energy, Inc. BCEI is set to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +13.66% and a Zacks Rank #1.

Gevo Inc. GEVO is set to release second-quarter 2020 results on Aug 10. It has an Earnings ESP of +40.00% and a Zacks Rank #2.

A Recent Sector Release

Bloom Energy Corporation BE reported a second-quarter 2020 loss of 38 cents per share, narrower than the Zacks Consensus Estimate of a loss of 59 cents.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Renewable Energy Group, Inc. (REGI): Free Stock Analysis Report
Gevo, Inc. (GEVO): Free Stock Analysis Report
Bonanza Creek Energy, Inc. (BCEI): Free Stock Analysis Report
Bloom Energy Corporation (BE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

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

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.