What's in the Offing for Scorpio Tankers (STNG) Q3 Earnings?
Scorpio Tankers STNG is scheduled to release third-quarter 2022 results on Nov 1, before market open.
The shipping company has a decent surprise record as its earnings beat the Zacks Consensus Estimate in three of the last four quarters (missing the same in the remaining one). The average beat is 14.70%.
The Zacks Consensus Estimate for third-quarter earnings has been revised 16.9% upward to $3.81 over the past 60 days.
Against this backdrop, let’s examine the factors that are likely to have impacted STNG’s September-quarter performance.
We expect Scorpio Tankers’ third-quarter bottom-line performance to have been hurt by higher vessel operating expenses, mainly due to the 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 third-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 a positive surprise. However, that is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Scorpio Tankers has an Earnings ESP of -0.81% as the Most Accurate Estimate is currently pegged at $3.78, 3 cents below 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 sports a Zacks Rank of 1, currently.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Transportation sector, as our model shows that these have the right combination of elements to beat on third-quarter 2022 earnings:
Copa Holdings CPA has an Earnings ESP of +0.26% and a Zacks Rank #2. CPA will release results on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA has an expected earnings growth rate of more than 100% for the current year. CPA delivered a trailing four-quarter earnings surprise of 174.22%, on average.
Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB, has an Earnings ESP of +0.72% and a Zacks Rank #3. WAB will release results on Nov 1.
Wabtec’s earnings outshined the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining quarter). The average beat is 0.42%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
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