tiprankstipranks
Green Plains Swings to Quarterly Profit; Shares Rise
Market News

Green Plains Swings to Quarterly Profit; Shares Rise

Shares of Green Plains Inc. (NASDAQ: GPRE) rose 1.8% to close at $36 on August 2, after the third-largest ethanol fuel producer in North America reported a surprise profit in the second quarter, driven by top-line growth.

Green Plains recorded earnings of $0.20 per share in Q2, compared to the $0.23 loss per share estimated by analysts. The company reported a loss of $0.24 per share in the same quarter last year.

Additionally, total revenues generated in the quarter amounted to $724.4 million, beating the consensus estimate of $715.42 million. Revenues also surged 86.7% year-over-year. Higher prices and production volumes of ethanol, distiller grains, and corn oil, along with elevated trading revenues within the agribusiness and energy services segments, drove revenues.

The company’s ethanol production revenues came in at $555.3 million, up 91.1% year-over-year, while revenues of $173.5 million at the agribusiness and energy services unit recorded 72.6% growth.

Expressing confidence about the results, Green Plains CEO Todd Becker commented, “We believe our growing focus on low-carbon, innovative ingredients, supported through expanded protein opportunities, renewable corn oil and future opportunities in carbon capture and sequestration, keeps us on a continued path to deliver on our 2024 and 2025 financial goals.” (See Green Plains stock charts on TipRanks)

On July 14, Evercore ISI analyst Todd Firestone initiated coverage of the stock with a Hold rating and a price target of $44 (22.2% upside potential), as Green Plains now is focused on a higher margin slate of product offerings rather than being solely an ethanol producer.

Shares have rallied almost 172% over the past year, while Wall Street analysts are still bullish about the stock. The Strong Buy consensus rating boasts 4 Buy ratings versus 1 Hold rating. Looking ahead, the average Green Plains price target stands at $40.80, putting the upside potential at about 13.3% over the next 12 months.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Green Plains is currently Very Positive, as the cumulative change in holdings across all 8 hedge funds that were active in the last quarter was an increase of 1.1 million shares.

Related News:
Regeneron’s Antibody Gets Updated FDA Nod
Chevron’s Q2 Results Beat Analysts’ Expectations
XPeng Records Highest Monthly Deliveries This July

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles