What happened Shares of biofuel energy stock Renewable Energy Group (NASDAQ: REGI) jumped as much as 15.4% on Tuesday after it reported first-quarter 2021 financial results. Shares were still up 12% at 3:15 p.m. EDT. So what Quarterly revenue was up 14.1% to $539.7 million, slightly topping analyst estimates. Net income was $38.6 million, down 47.3% from a year ago, or $0.88 per share, versus the $0.16 analysts were expecting. Image source: Getty Images. Rising raw material costs certainly put pressure on the bottom line but not as much as analysts were expecting. And management indicated that demand continues to grow as customers look for lower carbon fuels for their energy mix. Now what Results can be volatile in the biofuels industry and feedstock costs will be worth watching over the next few quarters. Management has already said that rising costs are eating into margin and that will likely continue throughout 2021. Demand may offset some of this pressure and there could be some ability to raise prices if competing fuels rise, but those are largely out of management's control. For now, the market is happy with the surprisingly strong profit and that was enough to send shares higher. 10 stocks we like better than Renewable Energy GroupWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Renewable Energy Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source