Gevo Inc (NASDAQ: GEVO) has been a hot topic of discussion as of late, and for good reason. Year-to-date, the stock is up nearly 100%, and with earnings around the corner, many are expecting a continuation of the extreme gains.
But, what exactly should you expect to see out of the company’s financial results, and what opportunities are ahead?
Skip to What You Want to Read
- What to Expect From Gevo’s Earnings
- What’s in the Future for Gevo?
- What Analysts Think About the Stock?
- Final Thoughts
What to Expect From Gevo’s Earnings
As mentioned above, Gevo is expected to report its financial results soon. In fact, the company will release its results for the quarter ended December of 2020 on March 17, 2021, which is less than a week away.
So, what can you expect to see?
In terms of numbers, here’s what I’m expecting:
- Loss. First and foremost, I’m expecting that we’ll see a quarterly loss in the amount of $0.03 per share. Should this be the case, it will represent a more than 100% year over year improvement.
- Revenue. I’m also expecting that revenues will come in at about $850,000. Should this be the case, it will represent a year over year decline. Nonetheless, I’m expecting for revenues to ramp up in a significant way throughout the 2021 year and beyond. We’ll get into that in a bit.
While the numbers are important, they’re not the only thing investors will be looking for when it comes to the company’s quarterly results. In particular, I’ll be looking for updates on the following:
- Net Zero 1. We’ve been hearing a lot about the Net Zero 1 facility. This is the facility the company intends on building to manufacture its clean aviation fuel. The facility will come with a net zero carbon footprint, meaning that whatever carbon it creates, it will offset. That’s exciting news, and investors are going to want to know where we are with the facility.
- Agreements. GEVO has entered into several agreements surrounding the sale and distribution of its renewable aviation fuel. Have there been any more agreements? How are things going with the relationships the company has minted and expanded in the past several months?
- Outlook. The outlook is going to be crucial here. With Joe Biden in office and democrat party control over Congress and the Senate, investors are expecting legislation in favor of clean energy, which should be great for GEVO. The big question is, will the company’s outlook reflect investor expectations?
What’s in the Future for Gevo?
Regardless of what happens with this earnings report, the future looks bright for GEVO. As mentioned above, with democrat control in Washington DC, I’m expecting that we’ll see quite a bit of activity in the go-green movement, with legislation that will support the go-green concept.
So, GEVO can look forward to grant funding, tax cuts, and increased demand for its renewable fuel products as the United States government is likely to provide tax cuts to those that take advantage of clean energy products.
Moreover, the company is aggressively expanding its production capacity after entering into multiple agreements that suggest demand is increasing for its clean fuels. As this expansion continues, I’m expecting to see significant revenue growth, ultimately leading the company to profitability by late 2021 or early 2022.
All told, the future is looking pretty bright for GEVO.
What Analysts Think About the Stock?
Analysts seem to be just as bullish on GEVO stock as I am. While there aren’t many analysts covering the stock, those that are have an overwhelmingly positive opinion.
In fact, TipRanks points to the fact that two analysts cover the stock, both of which rate it a Buy. One analyst has set a price target of $16, the other’s price target is $18, for a median target of $17, which represents the potential for the stock to grow by nearly 100%.
All told, analysts are excited about the future for the company.
The bottom line here is that with President Joe Biden and the democrat control of Washington DC in mind, we’re likely to see major changes in the United States energy industry. Gevo is putting itself in a position to be a significant player in this evolution.
Moreover, with earnings on the horizon, a major catalyst is less than a week away. All told, GEVO stock could be one of the biggest opportunities in clean energy today, both from a short-term and a long-term view.