Scorpio Tankers Misses on Both Revenue and Earnings

Scorpio Tankers (NYSE: STNG  ) reported earnings on July 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Scorpio Tankers missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded.

Margins grew across the board.

Revenue details
Scorpio Tankers reported revenue of $51.5 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $54.3 million on the same basis. GAAP reported sales were 91% higher than the prior-year quarter's $27.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.03. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.05 per share. GAAP EPS were $0.03 for Q2 against -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.5%, much better than the prior-year quarter. Operating margin was 7.5%, much better than the prior-year quarter. Net margin was 7.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $58.1 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $227.5 million. The average EPS estimate is $0.21.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 17 members out of 23 rating the stock outperform, and six members rating it underperform. Among seven CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Scorpio Tankers a green thumbs-up, and five give 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 $11.30.

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