Genie Energy (NYSE:GNE) Releases Earnings Results, Meets Expectations

Key Points

• Genie Energy reported quarterly EPS of $0.39, matching analyst expectations, while revenue of $127.24 million exceeded the $122 million consensus.
• Profitability improved sharply: operating income rose 72% to $12.7 million and Adjusted EBITDA increased 67% to $13.7 million. Retail margins recovered to 31%, though the customer base continued to shrink, with RCEs down 15% year over year.
• The company ended the quarter with $213.8 million in cash and marketable securities and $6.7 million in debt; it repurchased $2 million of shares and paid $2 million in dividends. Management said it remains on track to meet full-year Adjusted EBITDA guidance.

Genie Energy (NYSE:GNE - Get Free Report) announced its quarterly earnings results on Thursday. The oil and gas producer reported $0.39 earnings per share for the quarter, meeting analysts' consensus estimates of $0.39, FiscalAI reports. Genie Energy had a net margin of 5.05% and a return on equity of 12.80%. The business had revenue of $127.24 million during the quarter, compared to analysts' expectations 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 Down 2.2%

Shares of GNE traded down $0.37 during mid-day trading on Thursday, reaching $16.72. The company's stock had a trading volume of 124,136 shares, compared to its average volume of 67,399. Genie Energy has a 12-month low of $12.69 and a 12-month high of $17.50. The stock has a market cap of $440.12 million, a PE ratio of 20.64 and a beta of 0.30. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.89 and a quick ratio of 2.75. The company's 50 day moving average is $16.20 and its 200 day moving average is $14.68.

Genie Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Friday, November 13th will be given a dividend of $0.0750 per share. This represents a $0.30 annualized dividend and a dividend 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%.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Freedom Capital downgraded shares of Genie Energy from a "strong-buy" rating to a "hold" rating in a report on Monday, August 10th. Weiss Ratings restated a "hold (c)" rating on shares of Genie Energy in a research report on Monday, September 14th. Finally, Wall Street Zen raised Genie Energy from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. Two investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, the company currently has a consensus rating of "Hold".

Genie Energy Company Profile

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.

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