GEVO Stock – Q1 Results Disappointed, What’s Next?

Gevo Stock

GEVO stock (NASDAQ:GEVO) has been to-ing and fro-ing in recent weeks.

The last time we visited these shares (almost 10 days ago), market sentiment suggested a climb back to the $2.50 mark was ahead. This was a few days shy of the company’s Q1 earnings results for 2019.

Unfortunately, those results turned sentiment, and a mighty tumble from $2.21 to $1.94 followed.

Now, once again, GEVO stock is showing massive volatility having suddenly climbed 6.19% only yesterday.

Currently selling for $2.05 USD, are shares making a bullish run once again? What is going on with this renewable chemicals and advanced biofuels company?

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GEVO Stock – Q1 Earnings Results

As stated, the company’s Q1 results showed an overall loss from the year-ago period. Specifically, revenue came in at $6.4 million as compared to $8.2 million in the same period in 2018.

Further, gross loss was $2.6 million for Q1 versus $2.3 million for Q1 2018. Along with that, the company reported an increase of $0.2 million in operational expenses “due primarily to an increase in employee-related expenses and consulting expenses”.

And the bad news kept coming: 

“For the first quarter of 2019, we reported a net loss of $6.2 million or a loss of $0.60 a share based on a weighted average shares outstanding of 10,153,873. This compares to a loss of $2.5 million in the first quarter of 2018 or a loss of $2.22 per share”.

What’s Next?

Analysts have been quiet since the company reported its Q1 results. But previously, GEVO was given a consensus one-year price target of $10 per share. According to Findanews.com, “This means the stock has a potential increase of 385.44% from where the GEVO share price has been trading recently which is between $1.8926 and $2.09”.

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Despite losing 24.13% over the last three months, analysts have remained positive over the future fundamentals of GEVO stock. It’s possible that this bullish sentiment is driven by the move to sustainable energy across all industry today.

With a focus on substituting non-sustainable fuels with renewable carbon alternatives, GEVO stock could be on the right side of a global movement in sustainability.

If you love a speculative stock, then GEVO could be one to hold onto.

Featured Image: Deposit Photos/everythingposs