Scorpio Tankers (STNG) Beats Q4 Earnings Estimates

Group 1: Earnings Performance - Scorpio Tankers reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of$ 0.49 per share, but down from $2.75 per share a year ago, representing an earnings surprise of 28.57% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Scorpio Tankers posted revenues of$ 192.15 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.31% and down from $334.07 million year-over-year [2] Group 2: Stock Performance and Outlook - Scorpio Tankers shares have declined about 3% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is$ 0.92 on revenues of $197.17 million, and for the current fiscal year, it is$ 4.86 on revenues of $903.42 million [7] Group 3: Industry Context - The Transportation - Shipping industry, to which Scorpio Tankers belongs, is currently ranked in the bottom 8% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Scorpio Tankers' stock performance [5] - The unfavorable trend in estimate revisions has resulted in a Zacks Rank 4 (Sell) for Scorpio Tankers, suggesting expected underperformance in the near future [6]