Green Plains Tanks 9% on Wider-Than-Expected Q4 Loss

Green Plains (NASDAQ: GPRE) shares dropped over 9% on February 11 to close at $29.94, after the third-largest ethanol fuel producer in North America reported mixed Q4 results.

Q4 Numbers

The company reported an adjusted loss of $0.18 per share, which fell massively short of the street’s estimated earnings of $0.26 per share. However, the loss was much narrower compared to the reported adjusted loss of $1.43 for the prior-year period.

However, revenues jumped 67.6% year-over-year to $802.3 million, surpassing consensus estimates of $755.5 million.

The increase in revenues reflected a 45.3% surge in Ethanol production to $586 million and a 161.15% growth in Agribusiness and energy services to $221.3 million.

CEO Comments

Green Plains CEO, Todd Becker, commented, “We believe 2022 is shaping up to be a true inflection point for our company and we are focused on executing on key transformation initiatives as we move through this year and beyond.”

He further added, “We are in substantive discussions with potential partners in protein, corn oil, sugar and carbon and expect to make progress during the first half of 2022 that will be beneficial for the shareholders and stakeholders of Green Plains.”

Analysts Recommendation

Overall, the stock has a Strong Buy consensus rating based on 3 unanimous Buys. At the time of writing, the average Green Plains price target was $48.67, which implies an upside potential of 62.56% over the next 12 months.

TipRanks’ Smart Score

GPRE scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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