Midstream energy infrastructure company Genesis Energy (NYSE: GEL) will be reporting earnings this Thursday before the bell. Here’s what to look for.
Genesis Energy beat analysts’ revenue expectations last quarter, reporting revenues of $440.8 million, up 10.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS 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 be flat year on year, improving from the 8.3% decrease 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 to 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 infrastructure segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kinder Morgan delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 3.3%, and Expand Energy reported revenues up 41%, topping estimates by 48.2%. Kinder Morgan’s stock price was unchanged after the resultswhile Expand Energy was up 4.2%.
Read our full analysis of Kinder Morgan’s results here and Expand Energy’s results here.
There has been positive sentiment among investors in the infrastructure segment, with share prices up 5.2% on average over the last month. Genesis Energy is down 4.4% during the same time and is heading into earnings with an average analyst price target of $19.67 (compared to the current share price of $16.87).
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