Renewable Energy Group's Headache Continued in Q2
It appeared that the nation's largest biodiesel producer had finally turned a corner in 2018. Yet sustained pricing headwinds -- and stubborn members of Congress -- are proving difficult to overcome for Renewable Energy Group (NASDAQ: REGI). Judging from second-quarter 2019 operating results, investors might need all the patience they can muster.
The biodiesel producer saw average selling price (ASP) per gallon drop 13% from the year-ago period. An important tax credit remains unavailable due to government inaction. While the company attempted to offset that top-line weakness by selling gallons from inventory, higher feedstock prices eroded margins.
Still, despite the headwinds, Renewable Energy Group is in a good place relative to its peer group. It also made a handful of moves to position itself more effectively for the long haul, although that may not make waiting out the storm any more comforting. Here's what investors need to know about the latest operating results.
Source Fool.com