Midstream energy infrastructure company Genesis Energy (NYSE: GEL) will be announcing earnings results this Thursday before the bell. Here’s what to expect.
Genesis Energy beat analysts’ revenue expectations last quarter, reporting revenues of $532 million, up 41% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Genesis Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Genesis Energy’s revenue to decline 1.6% year on year, a reversal from the 4.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Genesis Energy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Genesis Energy’s peers in the upstream & integrated segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Expand Energy delivered year-on-year revenue growth of 11.6%, beating analysts’ expectations by 54.4%, and Kinder Morgan reported revenues up 9.3%, topping estimates by 20.4%. Expand Energy traded down 3.2% following the results while Kinder Morgan’s stock price was unchanged.
Read our full analysis of Expand Energy’s results here and Kinder Morgan’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the upstream & integrated stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. Genesis Energy is up 1.1% during the same time and is heading into earnings with an average analyst price target of $18 (compared to the current share price of $14.18).
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