Teekay Tankers Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag

Teekay Tankers (NYSE:TNK) Full Year 2024 Results

Key Financial Results

• Revenue: US$1.23b (down 17% from FY 2023).
• Net income: US$403.7m (down 22% from FY 2023).
• Profit margin: 33% (down from 35% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: US$11.73 (down from US$15.22 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Teekay Tankers EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 8.4%.

The primary driver behind last 12 months revenue was the Tankers segment contributing a total revenue of US$1.11b (90% of total revenue). Notably, cost of sales worth US$741.5m amounted to 60% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to US$93.6m (67% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$56.0m. Explore how TNK's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 20% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 3.9%.

Performance of the American Oil and Gas industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

You should learn about the 2 warning signs we've spotted with Teekay Tankers (including 1 which shouldn't be ignored).

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