How has GPRE's earnings trended recently?
4/4/2025 12:24am
Green Plains Renewable Energy (GPRE) has shown a declining trend in earnings and revenue recently, with significant challenges and strategic initiatives influencing its financial performance.
1. **Earnings Decline**: The most recent reported quarter for GPRE ended on December 31, 2024, with an estimated net income of -$0.23 per share and a total revenue of $2.5 billion. This reflects a decrease from the previous quarter's earnings of $0.15 per share and an absence of revenue data, indicating a significant decline in profitability.
|code|Ticker|Name|Date|Estimate EPS|Estimate Revenue|market_code|
|---|---|---|---|---|---|---|
|GPRE|GPRE.O|Green Plains|2022 Q1|-0.2|7.2058E8|185|
|GPRE|GPRE.O|Green Plains|2022 Q2|0.17|8.9934E8|185|
|GPRE|GPRE.O|Green Plains|2022 Q3|-0.11|9.1984E8|185|
|GPRE|GPRE.O|Green Plains|2022 Q4|-0.25|8.9442E8|185|
|GPRE|GPRE.O|Green Plains|2023 Q1|-0.4|8.2544E8|185|
|GPRE|GPRE.O|Green Plains|2023 Q2|-0.01|8.1104E8|185|
|GPRE|GPRE.O|Green Plains|2023 Q3|-0.11|8.1932E8|185|
|GPRE|GPRE.O|Green Plains|2023 Q4|0.15|7.8196E8|185|
|GPRE|GPRE.O|Green Plains|2024 Q1|-0.33|6.5345E8|185|
|GPRE|GPRE.O|Green Plains|2024 Q2|-0.13|6.4665E8|185|
2. **Revenue Decline**: The company's revenue has been decreasing, with the latest reported figure showing a significant drop to $597.21 million, missing the estimate by $57.19 million. This is a 28.3% year-over-year decline, which is a concerning trend for the company's financial health.
3. **Strategic Initiatives**: Despite the decline in earnings and revenue, GPRE has been actively pursuing strategic initiatives to drive future growth and shareholder value. The company is transitioning from a commodity-processing business to a value-added agricultural technology business, which could position it for long-term success if executed effectively.
4. **Analyst Forecasts**: Analysts have reduced their earnings estimates for Q1 2025, with Roth Capital forecasting an earnings per share (EPS) of $2.25 for FY2025, which suggests a potential recovery or stabilization in earnings after the recent decline.
5. **Financial Challenges**: GPRE has faced significant financial challenges, including a net loss in the first quarter of 2024, which was partly due to a substantial income tax expense. However, the company has shown resilience by managing liquidity effectively and reducing income tax expenses significantly.
In conclusion, GPRE's recent earnings trend has been negative, with a notable decline in both net income and revenue. However, the company's strategic initiatives and potential recovery in earnings as per analyst forecasts offer a cautious optimism for the future.