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Will Gevo, Inc. (NASDAQ:GEVO) Earnings Surprise?

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO) will be releasing their Q3 2017 earnings announcement after the market closes on Monday, November 6, 2017. According to reports, industry analysts are expecting Gevo to report a (-$0.41) per share loss for Q3 2017.

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO), based in Englewood, Colorado, is a green technology and biofuels company. Gevo has developed proprietary technology to produce isobutanol, as well as related products, from renewable feedstocks. Gevo’s business focuses on bio-based alternatives to petroleum-based products. Gevo produces isobutanol, ethanol, and high-value animal feed at its fermentation plant in Luverne, Minnesota.

Gevo Q3 Business Advances

On July 25, 2017, Gevo announced, working with Praj Industries Ltd., that Gevo’s proprietary isobutanol technology would be available for licensing to sugar-cane processors. Licensing efforts have focused on Praj plants located in India, South America and South-East Asia, with initial capacity targeted to come on-line in 2019 or 2020.

On October 9, 2017, Gevo, Inc. (NASDAQ:GEVO) announced that it will be partnering with the Los Alamos National Laboratory (LANL) on a project to improve the energy density of certain Gevo high energy density fuels (HEDFs), such as its alcohol-to-jet-fuel (ATJ). HEDFs are currently used in U.S. military air and sea-launched cruise missiles. If this project is successful in scaling HEDFs cost-effectively, there may be an even broader application in the general aviation sector.

GEVO Stock Performance

GEVO stock has been trading under $1 since mid-May. Technically, this puts the company in violation of NASDAQ Rule 5550(a)(2) which states that “(a) Continued Listing Requirements for Primary Equity Securities: (2) Minimum bid price of at least $1 per share.”

When the performance of Gevo, Inc. (NASDAQ:GEVO) shares is adjusted for dilution, the per share losses seem eye-popping. In 2012 the per share loss was (-$558.37). That loss was spread out over just 110,000 outstanding shares in 2012. By 2016 the per share loss was (-$9.68) and the number of outstanding shares was 3.85 million.

Two firms follow Gevo, Inc. (NASDAQ:GEVO). One rates GEVO stock as a “Strong Buy” while the other rates the shares as a “Hold”. Their analysts’ consensus, one-year price target is $8.50. However, GEVO stock has lost over 80% of its value in the past year and is 92% below its 52-week high of $9.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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