It's been a good week for Scorpio Tankers Inc. (NYSE:STNG) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.6% to US$39.76. It looks like a credible result overall - although revenues of US$204m were what the analysts expected, Scorpio Tankers surprised by delivering a (statutory) profit of US$1.22 per share, an impressive 69% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 3 warning signs about Scorpio Tankers. View them for free.

Taking into account the latest results, the current consensus, from the nine analysts covering Scorpio Tankers, is for revenues of US$899.1m in 2025. This implies a not inconsiderable 16% reduction in Scorpio Tankers' revenue over the past 12 months. Statutory earnings per share are expected to dive 50% to US$5.47 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$915.7m and earnings per share (EPS) of US$5.32 in 2025. So the consensus seems to have become somewhat more optimistic on Scorpio Tankers' earnings potential following these results.

See our latest analysis for Scorpio Tankers

The consensus price target fell 5.0% to US$60.60, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Scorpio Tankers, with the most bullish analyst valuing it at US$75.00 and the most bearish at US$42.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Scorpio Tankers shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 20% by the end of 2025. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.8% per year. It's pretty clear that Scorpio Tankers' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Scorpio Tankers' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Scorpio Tankers' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Scorpio Tankers' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Scorpio Tankers analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Scorpio Tankers (1 is potentially serious!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.