What's Next: Scorpio Tankers's Earnings Preview

Scorpio Tankers STNG is preparing to release its quarterly earnings on Tuesday, 2024-10-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Scorpio Tankers to report an earnings per share (EPS) of $2.38.

Scorpio Tankers bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

The company's EPS beat by $0.01 in the last quarter, leading to a 0.25% drop in the share price on the following day.

Here's a look at Scorpio Tankers's past performance and the resulting price change:

Scorpio Tankers Share Price Analysis

Shares of Scorpio Tankers were trading at $62.02 as of October 25. Over the last 52-week period, shares are up 9.2%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Scorpio Tankers

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Scorpio Tankers.

With 3 analyst ratings, Scorpio Tankers has a consensus rating of Neutral. The average one-year price target is $75.33, indicating a potential 21.46% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Plains GP Holdings, Hess Midstream and International Seaways, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Plains GP Holdings, with an average 1-year price target of $19.0, suggesting a potential 69.36% downside.
• As per analysts' assessments, Hess Midstream is favoring an Neutral trajectory, with an average 1-year price target of $39.0, suggesting a potential 37.12% downside.
• International Seaways is maintaining an Buy status according to analysts, with an average 1-year price target of $61.0, indicating a potential 1.64% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Plains GP Holdings, Hess Midstream and International Seaways are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Scorpio Tankers ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Discovering Scorpio Tankers: A Closer Look

Scorpio Tankers Inc is a provider of marine transportation of petroleum products. It owns, lease finances or bareboat charters in hundred ten product tankers namely thirty nine LR2 tankers, fifty seven MR tankers and forteeen Handymax tankers. The company's fleet of tankers is the largest, most eco-friendly and newest fleet on the water hauling clean petroleum products. They provide seaborne transportation of crude oil and refined petroleum products worldwide. The company generates majority of its revenue from MR vessel.

A Deep Dive into Scorpio Tankers's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Scorpio Tankers's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 15.6% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Energy sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Scorpio Tankers's net margin is impressive, surpassing industry averages. With a net margin of 59.72%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Scorpio Tankers's ROE excels beyond industry benchmarks, reaching 8.0%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.54%, the company showcases effective utilization of assets.

Debt Management: Scorpio Tankers's debt-to-equity ratio is below the industry average at 0.34, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Scorpio Tankers visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.