Tanking company Scorpio Tankers (NYSE:STNG) will be reporting earnings tomorrow before the bell. Here’s what to expect.
Scorpio Tankers missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $258.2 million, down 10.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates. It reported 104.8 total vessels, down 6.5% year on year.
Is Scorpio Tankers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Scorpio Tankers’s revenue to decline 40.3% year on year to $199.3 million, a further deceleration from the 27.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
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. Scorpio Tankers has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Scorpio Tankers’s peers in the transportation and logistics segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Kirby posted flat year-on-year revenue, meeting analysts’ expectations, and XPO reported flat revenue, in line with consensus estimates. Kirby traded up 2.4% following the results while XPO was also up 8.6%.
Read our full analysis of Kirby’s results here and XPO’s results here.
Investors in the transportation and logistics segment have had steady hands going into earnings, with share prices flat over the last month. Scorpio Tankers is down 13.7% during the same time and is heading into earnings with an average analyst price target of $73.09 (compared to the current share price of $48.39).
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