Genie Energy Q4 prelim revenue rises

Overview

• US retail energy provider's preliminary Q4 revenue rose 18% yr/yr

• Preliminary Q4 income from operations fell sharply yr/yr

• Company to restate 2023, 2024 annual results due to accounting errors in captive insurance subsidiary

Outlook

• Genie Energy projects 2026 consolidated Adjusted EBITDA of $40 mln to $50 mln

• Company expects Genie Retail Energy margins to normalize as 2026 progresses

• Genie anticipates increased contribution from renewables segment

Result Drivers

• ENERGY MARKET VOLATILITY - Co said challenging energy market conditions earlier in the year weighed on FY results

• SOLAR ASSET WRITE-DOWNS - Write-downs of solar assets at Genie Solar in Q4 hurt profitability

Company press release: ID:nGNXbKnBDV

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the electric utilities peer group is "hold"

• Wall Street's median 12-month price target for Genie Energy Ltd is $16.00, about 16.9% above its March 18 closing price of $13.69

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

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