Tanking company Scorpio Tankers (NYSE: STNG) will be reporting results this Tuesday morning. Here’s what you need to know.
Scorpio Tankers beat analysts’ revenue expectations last quarter, reporting revenues of $241.4 million, up 25.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates. It reported 96.5 total vessels, down 4.4% year on year.
Is Scorpio Tankers 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 Scorpio Tankers’s revenue to grow 39.6% year on year, a reversal from the 47.6% 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. Scorpio Tankers has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Scorpio Tankers’s peers in the transportation and logistics segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kirby delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 2.7%, and Heartland Express reported a revenue decline of 19.7%, topping estimates by 2.6%. Kirby traded down 3.5% following the results while Heartland Express was up 12.5%.
Read our full analysis of Kirby’s results here and Heartland Express’s results here.
There has been positive sentiment among investors in the transportation and logistics segment, with share prices up 9.4% on average over the last month. Scorpio Tankers is up 9.1% during the same time and is heading into earnings with an average analyst price target of $86.67 (compared to the current share price of $83.49).
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