Back to top

Image: Bigstock

What's in Store for Scorpio Tankers (STNG) in Q4 Earnings?

Read MoreHide Full Article

Scorpio Tankers (STNG - Free Report) is scheduled to release fourth-quarter 2022 results on Feb 16, before market open.

The shipping company has a stellar surprise record as its earnings beat the Zacks Consensus Estimate in each of the last four quarters by an average of 19.38%.

Scorpio Tankers Inc. Price and EPS Surprise

Scorpio Tankers Inc. Price and EPS Surprise

Scorpio Tankers Inc. price-eps-surprise | Scorpio Tankers Inc. Quote

The Zacks Consensus Estimate for earnings has been revised 13.77% upward to $4.38 per share over the past 60 days.

Against this backdrop, let’s examine the factors that are likely to have impacted STNG’s December-quarter performance.

We expect Scorpio Tankers’ fourth-quarter bottom-line performance to have been affected by higher vessel operating expenses, mainly due to an increase in the average number of vessels in its fleet. High fuel costs are likely to have shot up total expenses.

However, with the gradual resumption of economic activities, the world trade gained pace and this should aid the fourth-quarter results of shipping stocks like Scorpio Tankers. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.

Optimism surrounding the oil-tanker market owing to increased demand for oil is a huge positive for STNG and is likely to have boosted its top line in the to-be-reported quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Scorpio Tankers this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Scorpio Tankers has an Earnings ESP of 0.00% as the Most Accurate Estimate is in-line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Scorpio Tankers carries a Zacks Rank of 3, currently.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, since our model shows that these have the right combination of elements to beat on their fourth-quarter 2022 earnings.

Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +2.66% and a Zacks Rank of 3. EXPD will release fourth-quarter 2022 results on Feb 21.

The company has a current Zacks Consensus Estimate for earnings of $1.88 per share, which has been revised 8.67% upward in the past 60 days. EXPD has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 22.1%.

Copa Holdings (CPA - Free Report) currently has an Earnings ESP of +0.42% and flaunts a Zacks Rank #1. CPA will release fourth-quarter 2022 results on Feb 15.

We expect Copa’s fourth-quarter performance to have been aided by upbeat air-travel demand. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 48.95%. 

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Expeditors International of Washington, Inc. (EXPD) - free report >>

Copa Holdings, S.A. (CPA) - free report >>

Scorpio Tankers Inc. (STNG) - free report >>

Published in