Earnings Preview: Scorpio Tankers (STNG) Q4 Earnings Expected to Decline

Core Viewpoint - Scorpio Tankers (STNG) is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus outlook indicating a significant drop in both earnings and revenues for the quarter ended December 2024 [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on February 13, 2025, with an expected EPS of $0.71, reflecting a year-over-year decrease of 74.2$196.69 million, down 41.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 34.06% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - Scorpio Tankers currently has an Earnings ESP of -38.78%, suggesting that analysts have lowered their expectations significantly [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, which may lead to a negative earnings surprise [10][11]. - Historically, Scorpio Tankers has beaten consensus EPS estimates in the last four quarters, with a surprise of +8.70% in the most recent quarter [12][13]. Industry Comparison - Another company in the shipping industry, Danaos (DAC), is expected to report earnings of $6.52 per share for the same quarter, indicating a year-over-year change of -6.7% [17]. - Danaos has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), making it difficult to predict an earnings beat [18].