Frontline (NYSE:FRO) Announces Earnings Results, Beats Estimates By $0.22 EPS

Key Points

• Frontline beat quarterly earnings expectations, reporting EPS of $2.96 versus the $2.74 consensus estimate. Revenue surged 96.5% year over year, while net margin reached 36.70%.
• FRO shares opened at $43.95, near their 52-week high of $45.17, with a $9.78 billion market capitalization and a price-to-earnings ratio of 10.82.
• Analyst sentiment remains mixed: Frontline has an average “Hold” rating and a $41.62 price target, despite BTIG raising its target to $55 and other firms issuing downgrades. Institutional investors own 22.70% of the stock.

Frontline (NYSE:FRO - Get Free Report) released its quarterly earnings results on Friday. The shipping company reported $2.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.74 by $0.22, Briefing.com reports. Frontline had a net margin of 36.70% and a return on equity of 27.80%. The company's revenue was up 96.5% compared to the same quarter last year. During the same period in the prior year, the company earned $0.36 earnings per share.

Frontline Price Performance

Shares of FRO opened at $43.95 on Friday. The stock has a market cap of $9.78 billion, a PE ratio of 10.82 and a beta of 0.02. The company has a debt-to-equity ratio of 0.83, a quick ratio of 2.03 and a current ratio of 2.03. Frontline has a fifty-two week low of $20.31 and a fifty-two week high of $45.17. The firm's 50-day simple moving average is $39.25 and its two-hundred day simple moving average is $36.72.

Analysts Set New Price Targets

A number of research analysts have weighed in on FRO shares. Danske downgraded Frontline from a "hold" rating to a "sell" rating in a report on Friday, August 21st. BTIG Research raised their target price on Frontline from $45.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Pareto Securities lowered Frontline from a "buy" rating to a "hold" rating and set a $39.46 price target on the stock. in a research report on Monday, May 25th. DZ Bank cut Frontline from a "hold" rating to a "sell" rating in a research note on Friday, August 21st. Finally, Wall Street Zen downgraded Frontline from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Frontline currently has an average rating of "Hold" and an average price target of $41.62.

Hedge Funds Weigh In On Frontline

Several large investors have recently made changes to their positions in FRO. Bank of Montreal Can grew its stake in shares of Frontline by 0.6% in the 4th quarter. Bank of Montreal Can now owns 73,544 shares of the shipping company's stock worth $1,605,000 after buying an additional 460 shares during the last quarter. Integrated Wealth Concepts LLC raised its stake in Frontline by 3.5% during the third quarter. Integrated Wealth Concepts LLC now owns 16,204 shares of the shipping company's stock valued at $369,000 after buying an additional 552 shares during the last quarter. University of Texas Texas AM Investment Management Co. purchased a new position in Frontline during the fourth quarter valued at $25,000. XTX Topco Ltd boosted its holdings in Frontline by 4.0% in the fourth quarter. XTX Topco Ltd now owns 29,773 shares of the shipping company's stock worth $650,000 after acquiring an additional 1,145 shares in the last quarter. Finally, TD Asset Management Inc boosted its holdings in Frontline by 8.3% in the fourth quarter. TD Asset Management Inc now owns 19,679 shares of the shipping company's stock worth $434,000 after acquiring an additional 1,516 shares in the last quarter. 22.70% of the stock is currently owned by hedge funds and other institutional investors.

Frontline Company Profile

Frontline Ltd. NYSE: FRO is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company's core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline's fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.

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