What's Next: Frontline's Earnings Preview

Frontline FRO will release its quarterly earnings report on Friday, 2025-05-23. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Frontline to report an earnings per share (EPS) of $0.66.

Frontline bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

The company's EPS missed by $0.07 in the last quarter, leading to a 0.0% drop in the share price on the following day.

Here's a look at Frontline's past performance and the resulting price change:

Market Performance of Frontline's Stock

Shares of Frontline were trading at $17.7 as of May 21. Over the last 52-week period, shares are down 38.7%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Frontline

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Frontline.

A total of 1 analyst ratings have been received for Frontline, with the consensus rating being Outperform. The average one-year price target stands at $20.0, suggesting a potential 12.99% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Plains GP Holdings, Hess Midstream and Scorpio Tankers, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Plains GP Holdings, with an average 1-year price target of $19.75, suggesting a potential 11.58% upside.
• Analysts currently favor an Neutral trajectory for Hess Midstream, with an average 1-year price target of $42.5, suggesting a potential 140.11% upside.
• Analysts currently favor an Outperform trajectory for Scorpio Tankers, with an average 1-year price target of $60.67, suggesting a potential 242.77% upside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for Plains GP Holdings, Hess Midstream and Scorpio Tankers, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Frontline ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Unveiling the Story Behind Frontline

Frontline PLC is an international shipping company engaged in the seaborne transportation of crude oil and oil products. Group operates through the tankers segment. The tankers segment includes crude oil tankers and product tankers. Its geographical area of operation includes Arabian Gulf, West African, the North Sea, and the Caribbean. Frontline earns revenue through voyage charters, time charters, and a finance lease. It is also involved in the charter, purchase, and sale of vessels.

Financial Milestones: Frontline's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Frontline's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.56% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Frontline's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 15.68%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.85%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Frontline's ROA excels beyond industry benchmarks, reaching 1.07%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.6.

To track all earnings releases for Frontline visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.