Scorpio Tankers Beats on Both Top and Bottom Lines
Scorpio Tankers (NYS: STNG) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Scorpio Tankers beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Gross margin dropped, operating margin increased, and net margin contracted.
Scorpio Tankers reported revenue of $28.9 million. The two analysts polled by S&P Capital IQ expected revenue of $24.3 million on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $17 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.02. The three earnings estimates compiled by S&P Capital IQ forecast -$0.09 per share. GAAP EPS were -$0.14 for Q1 compared to -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.9%, 1,270 basis points worse than the prior-year quarter. Operating margin was 2.9%, 340 basis points better than the prior-year quarter. Net margin was -17.7%, 940 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.1 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $99.2 million. The average EPS estimate is -$0.23.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members rating the stock outperform and five members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Scorpio Tankers a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Scorpio Tankers is buy, with an average price target of $8.75.
How did Scorpio Tankers treat you during the oil spike in 2008 and the subsequent bust? More importantly, what are you doing to prepare for the next spike, which some experts believe may be just around the corner? Prepare yourself with a well-positioned energy stock we profile in "The Only Energy Stock You'll Ever Need." Click here for instant access to this free report.
- Add Scorpio Tankers to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.