Genie Energy (NYSE:GNE) Issues Earnings Results, Hits Estimates

Genie Energy (NYSE:GNE) released its quarterly earnings results on Thursday. The oil and gas producer reported $0.39 EPS for the quarter, hitting the consensus estimate of $0.39, FiscalAI reports. Genie Energy had a return on equity of 12.80% and a net margin of 5.05%. The company had revenue of $127.24 million for the quarter, compared to analyst estimates of $122.00 million.

Here are the key takeaways from Genie Energy’s conference call:

• Profitability rebounded: Third-quarter operating income rose 72% to $12.7 million, Adjusted EBITDA increased 67% to $13.7 million, and diluted EPS climbed to $0.39 from $0.25. Management said it remains on track to meet its full-year Adjusted EBITDA guidance.
• Retail customer base continued to contract: RCEs fell 15% year over year, while meters declined 13%; 61,000 meters added during the quarter were slightly below the level needed to maintain the base, with churn at 6.3%. Higher acquisition spending also contributed to a 26% increase in consolidated SG&A.
• Retail margins recovered as more typical commodity conditions lifted gross margin to 31%, from 20.8% a year earlier, more than offsetting lower sales volumes. The comparison benefited from a prior-year quarter in which volatility compressed electricity margins and produced negative gas margins.
• GREW’s established businesses improved, while expansion initiatives remain investments: Diversegy and Genie Solar helped GREW generate $1.1 million in Adjusted EBITDA, but early-stage entities recorded an $861,000 loss. Genie is expanding Roded production in Israel and preparing U.S. operations, which will require further investment.
• Strong liquidity and shareholder returns: Cash, restricted cash, and marketable equity securities totaled $213.8 million, with $6.7 million of debt. The company repurchased $2 million of shares and paid another $2 million in dividends during the quarter.

Genie Energy Stock Performance

NYSE:GNE traded down $0.37 during mid-day trading on Thursday, reaching $16.72. The stock had a trading volume of 124,136 shares, compared to its average volume of 67,399. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.75 and a current ratio of 2.89. The firm has a market capitalization of $440.12 million, a price-to-earnings ratio of 20.64 and a beta of 0.30. Genie Energy has a twelve month low of $12.69 and a twelve month high of $17.50. The business has a 50 day simple moving average of $16.20 and a 200 day simple moving average of $14.68.

Genie Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Investors of record on Friday, November 13th will be issued a dividend of $0.0750 per share. This represents a $0.30 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Friday, November 13th. Genie Energy’s dividend payout ratio is currently 37.04%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on GNE. Freedom Capital lowered shares of Genie Energy from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of Genie Energy in a research note on Monday, September 14th. Finally, Wall Street Zen upgraded shares of Genie Energy from a “hold” rating to a “buy” rating in a research note on Saturday, October 17th. Two analysts have rated the stock with a Hold rating. Based on data from MarketBeat, Genie Energy has an average rating of “Hold”.

About Genie Energy

Genie Energy Ltd. is an energy services company that provides electricity and natural gas to residential and small-business customers through retail energy businesses. Its offerings may include energy supply plans, renewable energy options and related services, with operations conducted through a portfolio of brands and subsidiaries.

The company’s retail energy activities have historically included serving customers in U.S. deregulated energy markets, where consumers can select an independent supplier rather than purchasing supply directly from a regulated utility.