Stock Analysis

Gevo (NasdaqCM:GEVO) Sees 13% Weekly Price Decline After Reporting Widening Net Losses

NasdaqCM:GEVO
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Gevo (NasdaqCM:GEVO) saw its share price decline by 13% over the past week, coinciding with the announcement of its earnings results for the year ending December 31, 2024. The company reported a decrease in sales and widening net losses, contributing to concerns about its financial performance. Additionally, the broader market environment, characterized by declines in major indexes amid tariff-related uncertainties, may have exacerbated the share price drop. With the Dow Jones and S&P 500 both experiencing multiple days of decline, market sentiment remained cautious, potentially impacting Gevo's stock performance further.

We've identified 2 possible red flags with Gevo and understanding the impact should be part of your investment process.

NasdaqCM:GEVO Earnings Per Share Growth as at Mar 2025
NasdaqCM:GEVO Earnings Per Share Growth as at Mar 2025

Find companies with promising cash flow potential yet trading below their fair value.

The last year has seen Gevo, Inc. deliver a total shareholder return of 47.65%, outperforming both the US market, which rose 5.6%, and the US Oil and Gas industry, which climbed 1.3%. Despite its wider net losses and ongoing unprofitability, Gevo's strategic moves likely influenced its share performance. Notably, the company formed a strategic alliance with Axens to develop sustainable aviation fuel, aiming to leverage advanced technologies for low-carbon biofuels.

Gevo's partnership with LG Chem to extend their joint development agreement around Ethanol-to-Olefins technology signals an ongoing commitment to deploying carbon-neutral products. Additionally, a significant share buyback program further indicates a confidence-inspiring action by the company. However, ongoing regulatory compliance issues, like its need to meet the Nasdaq bid price requirement, remain a concern. Together, these factors paint a complex picture of Gevo's position over the last year.

Review our historical performance report to gain insights into Gevo's track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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