Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Green Plains Renewable Energy Rides The Crush Spread To Yet Another Earnings Beat

Executive summary

Independent corn ethanol producer Green Plains Renewable Energy reported its fifth consecutive EPS beat in Q3, although revenue came in slightly below expectations. While the company's share price has benefited from a strong rebound in the ethanol crush spread in 2013, proposed regulatory changes have already caused this spread to narrow sharply. Analyst estimates for 2014 are not accounting for this reversal and the company's shares have 30% downside as a result.

Independent corn ethanol producer Green Plains Renewable Energy (NASDAQ:GPRE) handily beat its estimated EPS of $0.17, instead reporting $0.28. This represented the company's fifth consecutive beat on the top line, although it barely missed revenues at $758 million (compared to $766 million expected). The...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details