Green Plains Renewable Energy Increases Sales but Misses Estimates on Earnings

Seth Jayson, The Motley Fool
Updated

Green Plains Renewable Energy (NAS: GPRE) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Green Plains Renewable Energy beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Green Plains Renewable Energy booked revenue of $922.8 million. The six analysts polled by S&P Capital IQ anticipated net sales of $907.9 million. GAAP sales were 22% higher than the prior-year quarter's $756.8 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.36. The six earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.36 for Q4 were 18% lower than the prior-year quarter's $0.44 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 5.6%, 120 basis points worse than the prior-year quarter. Operating margin was 3.5%, 80 basis points worse than the prior-year quarter. Net margin was 1.4%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $813.6 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $3.25 billion. The average EPS estimate is $1.57.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 85 members rating the stock outperform and 52 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Green Plains Renewable Energy a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Green Plains Renewable Energy is outperform, with an average price target of $14.67.

How did Green Plains Renewable Energy treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike that some experts believe another spike may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement