Q3 Earnings Highlights: Scorpio Tankers (NYSE:STNG) Vs The Rest Of The Marine Transportation Stocks

Let’s dig into the relative performance of Scorpio Tankers (NYSE:STNG) and its peers as we unravel the now-completed Q3 marine transportation earnings season.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for marine transportation companies. While ocean freight is more fuel efficient and therefore cheaper than its air and ground counterparts, it results in slower delivery times, presenting a trade off. To improve transit speeds, the industry continues to invest in digitization to optimize fleets and routes. However, marine transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins. Geopolitical tensions can also affect access to trade routes, and if certain countries are banned from using passageways like the Panama Canal, costs can spiral out of control.

The 5 marine transportation stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.4% since the latest earnings results.

Weakest Q3: Scorpio Tankers (NYSE:STNG)

Scorpio Tankers reported revenues of $258.2 million, down 10.7% year on year. This print fell short of analysts’ expectations by 8.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

Scorpio Tankers delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 23.2% since reporting and currently trades at $46.80.

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Best Q3: Kirby (NYSE:KEX)

Kirby reported revenues of $831.1 million, up 8.7% year on year, outperforming analysts’ expectations by 0.9%. The business had a strong quarter with a solid beat of analysts’ Distribution and Services revenue estimates and a decent beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.2% since reporting. It currently trades at $106.65.

Pangaea (NASDAQ:PANL)

Pangaea reported revenues of $153.1 million, up 12.9% year on year, exceeding analysts’ expectations by 8.3%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 19.8% since the results and currently trades at $5.44.

Genco (NYSE:GNK)

Genco reported revenues of $70.75 million, up 46.2% year on year. This result lagged analysts' expectations by 3.9%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts’ adjusted operating income estimates.

Genco delivered the fastest revenue growth among its peers. The stock is down 14.7% since reporting and currently trades at $14.33.

Matson (NYSE:MATX)

Matson reported revenues of $962 million, up 16.3% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates.

The stock is up 3.7% since reporting and currently trades at $138.47.

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This content was originally published on Stock Story