Green Plains Renewable Energy (GPRE) Reports Inline, Still Technically Bullish

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09:56:21 am on April 28, 2011

Green Plains Renewable Energy (GPRE) reported results after the bell yesterday that were about inline with what analysts were expecting.  The company reported an EPS of .20/share which matched the estimates on revenues of $812 million (a bit above analyst estimate of $789 million).  It was likely a strong enough report to keep shares in a technically bullish state (more on this in a bit), but considering the company reported record revenues the drop in profits is a bit of a concern.

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CEO Todd Becker commented on the contraction in margins:  "Similar to last year at this time, forward ethanol margins are compressed during the middle of the year with no clear visibility of acceptable margins," stated Becker. "We have defensively locked away margins for a substantial portion of expected production in the second quarter of 2011. We also have been active in markets for fourth quarter production as we are seeing a return to more normalized industry margins. We believe the actions we have taken to diversify our business, with a goal of generating at least $50 million of total operating income annually from corn oil production, our agribusiness operations, and marketing, blending and distribution activities, will be successful.ā€¯

Technically, shares of GPRE remain bullish and are currently carving out a constructive cup with handle base.  A breakout above the $13 level would be a clear entry signal.

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