TORM Third Quarter 2022 Earnings: Beats Expectations

TORM (CPH:TRMD A) Third Quarter 2022 Results

Key Financial Results

• Revenue: US$448.1m (up 188% from 3Q 2021).
• Net income: US$217.1m (up from US$14.7m loss in 3Q 2021).
• Profit margin: 48% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue.
• EPS: US$2.66 (up from US$0.18 loss in 3Q 2021).

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

TORM Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 37%. Earnings per share (EPS) also surpassed analyst estimates by 4.3%.

Looking ahead, revenue is expected to fall by 20% p.a. on average during the next 3 years compared to a 7.0% decline forecast for the Oil and Gas industry in Europe.

Performance of the market in Denmark.

The company's shares are down 8.7% from a week ago.

Risk Analysis

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for TORM (1 makes us a bit uncomfortable) you should be aware 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.