Genie Energy (NYSE:GNE) Announces Earnings Results

Genie Energy (NYSE:GNE) released its quarterly earnings results on Thursday. The oil and gas producer reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.18, FiscalAI reports. The company had revenue of $100.40 million during the quarter, compared to analysts’ expectations of $104.57 million. Genie Energy had a net margin of 4.95% and a return on equity of 13.00%.

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

• Strong earnings improvement: Second-quarter net income rose to $11.4 million, or $0.42 per diluted share, from $2.3 million, or $0.09, a year earlier. Adjusted EBITDA increased $4.5 million to $7.5 million.
• Normalized wholesale energy markets restored Genie Retail Energy’s gross margin to its historical range, driving a 42% increase in gross profit and a 97% increase in Adjusted EBITDA despite a 5% revenue decline.
• GRE’s customer base contracted to 345,000 RCEs and 363,000 meters, partly due to the expiration of low-margin aggregation deals. The company increased spending on higher-cost acquisition channels, which management believes will produce higher-lifetime-value customers and support future results.
• Genie’s GREW segment reached positive EBITDA, supported by strong performance at Diversegy and Genie Solar. Diversegy is expanding its book of business at a double-digit annualized rate, while a second New York community solar project began contributing in the third quarter.
• Roded expanded Israeli pallet production, received government backing for a larger plant, earned certification to monetize plastic credits, and advanced plans for a southeastern U.S. manufacturing site. Management also expects to diversify into additional recycled-plastic products.

Genie Energy Price Performance

GNE traded down $0.21 during midday trading on Friday, reaching $14.53. 62,395 shares of the company’s stock were exchanged, compared to its average volume of 74,474. The firm has a market capitalization of $383.59 million, a price-to-earnings ratio of 29.65 and a beta of 0.20. The company has a quick ratio of 2.44, a current ratio of 2.54 and a debt-to-equity ratio of 0.03. Genie Energy has a one year low of $12.69 and a one year high of $16.60. The business has a 50-day simple moving average of $14.19 and a two-hundred day simple moving average of $14.12.

Genie Energy Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Friday, August 14th will be given a $0.075 dividend. This represents a $0.30 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Friday, August 14th. Genie Energy’s dividend payout ratio is 61.22%.

Hedge Funds Weigh In On Genie Energy

Several hedge funds and other institutional investors have recently modified their holdings of GNE. Quarry LP bought a new stake in Genie Energy in the third quarter valued at $35,000. Cubist Systematic Strategies LLC bought a new stake in shares of Genie Energy in the 1st quarter worth about $85,000. Virtus Advisers LLC acquired a new stake in shares of Genie Energy during the 3rd quarter worth about $124,000. Vise Technologies Inc. bought a new position in Genie Energy during the 4th quarter valued at about $159,000. Finally, Marshall Wace LLP acquired a new position in Genie Energy in the fourth quarter valued at about $171,000. Institutional investors own 49.15% of the company’s stock.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Wall Street Zen lowered Genie Energy from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Freedom Capital raised shares of Genie Energy from a “hold” rating to a “strong-buy” rating in a research report on Friday, May 15th. Finally, Weiss Ratings upgraded shares of Genie Energy from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy”.

Genie Energy Company Profile

Genie Energy Ltd. (NYSE: GNE) is a diversified energy holding company that operates through two primary segments: upstream oil and natural gas exploration and retail energy supply. Its exploration arm, Genie Energy E&P, pursues development of oil shale resources and conventional hydrocarbon deposits, holding licenses for projects in regions such as Israel’s Shefela basin and Jordan’s oil shale formations. The division also explores select opportunities in North America, leveraging technical partnerships to advance resource evaluation and pilot production programs.

Genie Retail Energy provides electricity and natural gas to residential and small commercial customers under regulated and deregulated frameworks.