Teekay Tankers (TNK) Stock Slides on Earnings Miss

Teekay Tankers (TNK) stock is declining after the company reported lower than expected earnings for the 2015 third quarter.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Teekay Tankers (TNK) - Get Report stock is falling 5.05% to $6.87 on heavy trading volume on Thursday afternoon after the company reported earnings that missed estimates for the third quarter of 2015. Revenue surpassed expectations.

Before the market open this morning, the oil and gas transportation provider reported earnings of 30 cents per share for the quarter ended September 30, up from 3 cents per share for the same period last year, but falling short of estimates of 35 cents per share.

Revenue more than doubled year-over-year to $125.37 million, beating estimates of $118.77 million.

Stronger results, compared with last year, were attributed to higher tanker rates and an increase in the company's fleet size.

"The significant increase in our scale will allow us to further optimize our fleet while enhancing our service offerings to both existing and new customers across more regions," CEO Kevin Mackay said in a statement.

Crude spot tanker rates are expected to continue to rise into 2016 as oil demand rises due to colder weather, and China and Indian petroleum reserves grow, Mackay added.

So far today, 3.69 million shares of Teekay Tankers have exchanged hands, compared with its average daily volume of 2.09 million shares.

Separately, TheStreet Ratings team rates TEEKAY TANKERS LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate TEEKAY TANKERS LTD (TNK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: TNK

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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