US BioEnergy beats analyst estimates handily as merger with VeraSun Energy nears

In South Dakota, US BioEnergy announced operating earnings of $0.05 per share,  beating the consensus analysts projected loss of $0.02 per share. The company benefited from a corn hedging strategy that held down fedstock prices, while ethanol prices rose. The company sold a record 73.8 million gallons of ethanol, and the company has a potential capacity of 800 Mgy. Pavel Molchanov, energy analyst for Raymond James, wrote “After updating our cost assumptions, as well as increasing our production forecast, we are raising our 2008 and 2009 EPS estimates. We maintain our Market Perform rating.”

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