Scorpio Tankers (STNG) Rises Despite Earnings Miss

NEW YORK (TheStreet) -- Scorpio Tankers  (STNG) rose 7.86% to $10.16 on Monday despite the company's announcement of fourth-quarter results that came up short of analysts' expectations.

The company reported a loss of 8 cents a share, 9 cents worse than the Capital IQ consensus estimate of an income of 1 cent a share. Revenues rose 77.4% year over year to $53.4 million, but this was well short of analysts' estimates of $69.72 million.

The company also announced that it sees a profitable first-quarter, while analysts expect 5 cents a share. Scorpio increased its quarterly dividend to 8 cents a share.

"Although our fourth quarter 2013 results reflect the deleterious effects of prolonged turnarounds of existing refineries and delays of commissioning the new refining assets, we remain confident in the underlying demand and supply thesis," said Chairman and CEO Emanuele Lauro in the company's statement. "Already in the first quarter, all of our vessel classes are experiencing higher returns than they did in the final quarter of 2013. We expect to be profitable this quarter..."

TheStreet Ratings team rates SCORPIO TANKERS INC as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SCORPIO TANKERS INC (STNG) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."

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