The 10-second takeaway
For the quarter ended March 31 (Q1), Scorpio Tankers beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share expanded.
Gross margin dropped, operating margin increased, and net margin contracted.
Scorpio Tankers reported revenue of $28.9 million. The two analysts polled by S&P Capital IQ expected revenue of $24.3 million on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $17 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.02. The three earnings estimates compiled by S&P Capital IQ forecast -$0.09 per share. GAAP EPS were -$0.14 for Q1 compared to -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.9%, 1,270 basis points worse than the prior-year quarter. Operating margin was 2.9%, 340 basis points better than the prior-year quarter. Net margin was -17.7%, 940 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $24.1 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $99.2 million. The average EPS estimate is -$0.23.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members rating the stock outperform and five members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Scorpio Tankers a green thumbs-up, and one gives 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 $8.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.