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Spotting Winners: Scorpio Tankers (NYSE:STNG) And Marine Transportation Stocks In Q1


Petr Huřťák /
2024/07/11 7:44 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Scorpio Tankers (NYSE:STNG) and the best and worst performers in the marine transportation industry.

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 decent Q1; on average, revenues missed analyst consensus estimates by 1.4%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and marine transportation stocks have held roughly steady amidst all this, with share prices up 4.7% on average since the previous earnings results.

Scorpio Tankers (NYSE:STNG)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Scorpio Tankers reported revenues of $389.8 million, up 3.3% year on year, exceeding analysts' expectations by 2.1%. Overall, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates.

Emanuele A. Lauro, Chairman and Chief Executive Officer, commented, "Reducing our debt and lowering our cash break even rate increases cash flow in any rate environment. This allows the Company to act opportunistically to further increase shareholder returns."

Scorpio Tankers Total Revenue

The stock is up 3.4% since reporting and currently trades at $78.

Read why we think that Scorpio Tankers is one of the best marine transportation stocks, our full report is free.

Best Q1: Kirby (NYSE:KEX)

Spun off from Kirby Industries, Kirby Corporation (NYSE:KEX) operates as a maritime transportation and services provider.

Kirby reported revenues of $808 million, up 7.7% year on year, outperforming analysts' expectations by 2.5%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Marine Transportation revenue estimates.

Kirby Total Revenue

Kirby scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $119.44.

Is now the time to buy Kirby? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Genco (NYSE:GNK)

Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Genco reported revenues of $79.09 million, up 42.5% year on year, in line with analysts' expectations. It was a weaker quarter for the company with a miss of analysts' earnings estimates.

As expected, the stock is down 8.5% since the results and currently trades at $20.73.

Read our full analysis of Genco's results here.

Matson (NYSE:MATX)

Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.

Matson reported revenues of $722.1 million, up 2.5% year on year, in line with analysts' expectations. Looking more broadly, it was a good quarter for the company with a decent beat of analysts' earnings estimates.

The stock is up 13.9% since reporting and currently trades at $122.55.

Read our full, actionable report on Matson here, it's free.

Pangaea (NASDAQ:PANL)

Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Pangaea reported revenues of $104.7 million, down 7.9% year on year, falling short of analysts' expectations by 10.8%. Looking more broadly, it was a mixed quarter for the company with an impressive beat of analysts' earnings estimates.

Pangaea had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 3.3% since reporting and currently trades at $7.52.

Read our full, actionable report on Pangaea here, it's free.

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