Shares of Renewable Energy Group Slide After Revising Q2 Outlook Lower
Shares of Renewable Energy Group (NASDAQ: REGI) fell as much as 21.1% today after the company reduced second-quarter 2020 guidance. Previously, the biomass-based diesel producer expected to report adjusted EBITDA of $20 million to $25 million. The business now expects adjusted EBITDA of negative $2 million to negative $12 million for the quarter.
Although poor market conditions contributed to the revision, Renewable Energy Group admitted that previously issued guidance contained calculation errors. That's not exactly what shareholders want to learn, especially during a period of historically weak demand for transportation fuels.
At the close, the small-cap stock had settled to a 20.5% loss.
Source Fool.com
