ook Out For Analyst’s Recommendation: Teekay Tankers Ltd. (TNK)
Author: Author Anna JonesPosted On: Posted on April 13, 2016
Teekay Tankers Ltd. (TNK) added 1.16% and closed at the price of $3.49. The firm currently has mean rating of Outperform while 3 analysts have recommended the shares as BUY, 4 recommended as OUTPERFORM and 4 recommended as HOLD. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.
The company’s mean estimate for sales for the current quarter ending Mar 16 is $164.14M by 6 analysts. The mean estimate of sales for the year ending Dec 16 is $607.70M by 11 analysts.
The mean price target for the shares of Company is at $7.3 while the highest price target suggested by the analysts is $12 and low price target is $4.25. The mean price target is calculated keeping in view the consensus of 11 brokerage firms.
The average estimate of EPS for the current fiscal quarter for Company stands at $0.41 while the EPS for the current year is fixed at $1.36 by 11 analysts.
The next one year’s EPS estimate is set at $1.03 by 11 analysts while revenue forecast for the same year is $522.94M. The analysts also projected the company’s long-term growth at 2.4 percent for the upcoming five years.
In its latest quarter Teekay Tankers Ltd. reported earnings of $0.33 a share. The posted earnings missed the analyst’s consensus of $0.41 per share with the surprise factor of -19.5 percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
Teekay Tankers Ltd. (TNK) on February 18, 2016 reported adjusted net income attributable to its shareholders of $48.5 million, or $0.31 per share, for the quarter ended December 31, 2015, compared to $18.6 million, or $0.21 per share, for the same period in the prior year. The increase is primarily due to stronger spot tanker rates in the fourth quarter of 2015 compared to the same period in the prior year and an increase in fleet size related to the acquisition of 17 modern, mid-size tankers during 2015 and the expansion of the Company’s chartered-in tanker portfolio in 2014 and 2015. Adjusted net income attributable to shareholders excludes a number of specific items that had the net effect of increasing net income attributable to shareholders by $3.9 million, or $0.03 per share, and by $1.7 million, or $0.01 per share, for the three months ended December 31, 2015 and 2014, respectively, as detailed in Appendix A to this release. Including these items, the Company reported, on a GAAP basis, net income attributable to its shareholders of $52.5 million, or $0.34 per share, and $20.3 million, or $0.22 per share, for the three months ended December 31, 2015 and 2014, respectively. Net revenues were $159.3 million and $77.4 million for the three months ended December 31, 2015 and 2014, respectively.
During the fourth quarter of 2015, the Company generated $74.0 million, or $0.48 per share, of free cash flow, compared to $31.7 million, or $0.35 per share, in the fourth quarter of 2014, with the increase due to higher average spot rates earned and an increase in the size of the Company’s fleet. On December 14, 2015, Teekay Tankers declared a dividend of $0.12 per share for the fourth quarter of 2015, which was paid on February 12, 2016 to all shareholders of record on February 2, 2016. Since the Company’s inception, it has declared dividends in 33 consecutive quarters.
Highlights
Reported fourth quarter 2015 adjusted net income attributable to shareholders of $48.5 million, or $0.31 per share, compared to $18.6 million, or $0.21 per share, in the same period of the prior year.
Reported fiscal year 2015 adjusted net income attributable to shareholders of $169.1 million, or $1.29 per share, compared to $33.9 million, or $0.39 per share, in the same period of the prior year.
Generated fourth quarter 2015 free cash flow of $74.0 million, or $0.48 per share, compared to $31.7 million, or $0.35 per share, in the same period of the prior year.
Announced and implemented new variable dividend policy; declared and paid cash dividend of $0.12 per share for the fourth quarter of 2015, up from $0.03 per share in the previous quarter.
Acquired two purpose-built Lightering Aframax tankers for an aggregate purchase price of approximately $80 million.
In January 2016, refinanced a majority of the Company’s fleet with a new five-year $900 million debt facility.