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The shipping company has an impressive surprise record, as its earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. The average beat is 7.86%.
The Zacks Consensus Estimate for earnings has been revised 21.75% downward to $2.41 per share over the past 60 days.
Against this backdrop, let’s examine the factors likely to have impacted STNG’s June-quarter performance.
We expect Scorpio Tankers’ second-quarter bottom-line performance to have been affected by higher vessel operating expenses mainly due to an increase in average number of vessels in its fleet. Supply-chain disruptions are also likely to have dented STNG’s performance.
However, with resumption of economic activities following removal of COVID-19-induced restrictions, world trade gained pace and this should aid second-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 is another positive for STNG and is likely to have boosted its top line in the to-be-reported quarter.
Earnings Whisper
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.
Earnings ESP: Scorpio Tankers has an Earnings ESP of 0.00% as the Most Accurate Estimate is in-line with the Zacks Consensus Estimate of $2.41 per share. 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 second-quarter 2023 earnings.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice. The average miss is 78.36%.
Copa Holdings (CPA - Free Report) currently has an Earnings ESP of +0.82% and carries a Zacks Rank #2. CPA will release second-quarter 2023 results on Aug 9.
We expect Copa’s second-quarter performance to have been aided by upbeat air-travel demand. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 14.6%.
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What's in Store for Scorpio Tankers (STNG) in Q2 Earnings?
Scorpio Tankers (STNG - Free Report) is scheduled to release second-quarter 2023 results on Aug 2, before market open.
The shipping company has an impressive surprise record, as its earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. The average beat is 7.86%.
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 21.75% downward to $2.41 per share over the past 60 days.
Against this backdrop, let’s examine the factors likely to have impacted STNG’s June-quarter performance.
We expect Scorpio Tankers’ second-quarter bottom-line performance to have been affected by higher vessel operating expenses mainly due to an increase in average number of vessels in its fleet. Supply-chain disruptions are also likely to have dented STNG’s performance.
However, with resumption of economic activities following removal of COVID-19-induced restrictions, world trade gained pace and this should aid second-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 is another positive for STNG and is likely to have boosted its top line in the to-be-reported quarter.
Earnings Whisper
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.
Earnings ESP: Scorpio Tankers has an Earnings ESP of 0.00% as the Most Accurate Estimate is in-line with the Zacks Consensus Estimate of $2.41 per share. 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 second-quarter 2023 earnings.
JetBlue Airways (JBLU - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1. Upbeat passenger volumes are likely to aid JBLU’s second-quarter results. You can see the complete list of today’s Zacks #1 Rank stocks here.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice. The average miss is 78.36%.
Copa Holdings (CPA - Free Report) currently has an Earnings ESP of +0.82% and carries a Zacks Rank #2. CPA will release second-quarter 2023 results on Aug 9.
We expect Copa’s second-quarter performance to have been aided by upbeat air-travel demand. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters by an average of 14.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.