Genie Energy (NYSE:GNE) Issues Quarterly Earnings Results

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

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 Stock Performance

Shares of NYSE GNE traded down $0.21 during trading on Friday, reaching $14.53. 62,395 shares of the stock traded hands, compared to its average volume of 74,474. Genie Energy has a 52-week low of $12.69 and a 52-week high of $16.60. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.54 and a quick ratio of 2.44. The company has a 50-day moving average of $14.19 and a 200-day moving average of $14.12. The stock has a market capitalization of $383.59 million, a P/E ratio of 29.65 and a beta of 0.20.

Genie Energy Announces Dividend

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

Institutional Trading of Genie Energy

Several hedge funds and other institutional investors have recently modified their holdings of the business. First Trust Advisors LP grew its position in shares of Genie Energy by 1.6% during the 4th quarter. First Trust Advisors LP now owns 66,180 shares of the oil and gas producer’s stock valued at $912,000 after purchasing an additional 1,049 shares in the last quarter. Quarry LP purchased a new stake in shares of Genie Energy in the third quarter worth $35,000. Barclays PLC raised its position in shares of Genie Energy by 4.8% in the fourth quarter. Barclays PLC now owns 53,586 shares of the oil and gas producer’s stock worth $738,000 after buying an additional 2,464 shares in the last quarter. Invesco Ltd. boosted its stake in Genie Energy by 12.9% during the fourth quarter. Invesco Ltd. now owns 32,693 shares of the oil and gas producer’s stock valued at $451,000 after buying an additional 3,727 shares during the period. Finally, New York State Common Retirement Fund lifted its position in Genie Energy by 98.3% during the second quarter. New York State Common Retirement Fund now owns 7,667 shares of the oil and gas producer’s stock valued at $206,000 after purchasing an additional 3,800 shares during the last quarter. Institutional investors own 49.15% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Weiss Ratings raised Genie Energy from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, June 18th. Wall Street Zen downgraded Genie Energy from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Freedom Capital raised Genie Energy from a “hold” rating to a “strong-buy” rating in a research report on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average 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.