Tanking company Scorpio Tankers (NYSE: STNG) will be reporting earnings this Thursday morning. Here’s what investors should know.
Scorpio Tankers beat analysts’ revenue expectations last quarter, reporting revenues of $303 million, up 48.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. It reported 91 total vessels, down 8.1% 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 83.2% year on year, a reversal from the 40.4% 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 will 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 Q2 results, giving us a hint as to what we can expect. Knight-Swift Transportation delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 2%, and Norfolk Southern reported revenues up 11.4%, topping estimates by 3.4%. Knight-Swift Transportation traded down 4.9% following the results while Norfolk Southern was up 6%.
Read our full analysis of Knight-Swift Transportation’s results here and Norfolk Southern’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Scorpio Tankers is up 12.7% during the same time and is heading into earnings with an average analyst price target of $95.60 (compared to the current share price of $79).
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