Frontier Group (NASDAQ:ULCC) Issues Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Key Points

• Frontier Group reported a quarterly EPS of ($0.31), missing the analysts' expectations by $0.03, while revenue declined 4.5% year-over-year to $929 million, below the consensus estimate of $951.92 million.
• Following the earnings report, shares of ULCC stock fell by 13.6%, trading at $3.54 with significant decreases in target prices from multiple analysts.
• Insider activity showed a senior vice president selling 12,000 shares at an average price of $3.89, indicating a reduction in personal stake in the company.

Frontier Group (NASDAQ:ULCC - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.31) EPS for the quarter, missing analysts' consensus estimates of ($0.28) by ($0.03), Briefing.com reports. The firm had revenue of $929.00 million during the quarter, compared to the consensus estimate of $951.92 million. Frontier Group had a return on equity of 5.53% and a net margin of 1.78%. Frontier Group's revenue was down 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.14 EPS. Frontier Group updated its Q3 2025 guidance to -0.420--0.260 EPS.

Frontier Group Stock Down 13.6%

Shares of ULCC stock traded down $0.56 during midday trading on Tuesday, reaching $3.54. 5,412,062 shares of the stock were exchanged, compared to its average volume of 3,612,825. The company has a current ratio of 0.49, a quick ratio of 0.45 and a debt-to-equity ratio of 0.48. The company's 50 day moving average is $3.99 and its two-hundred day moving average is $5.07. Frontier Group has a 1 year low of $2.79 and a 1 year high of $10.26. The firm has a market cap of $805.13 million, a PE ratio of 12.12 and a beta of 2.62.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ULCC shares. Morgan Stanley reduced their target price on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a report on Monday, May 19th. Barclays cut their target price on Frontier Group from $14.00 to $10.00 and set an "overweight" rating for the company in a research note on Tuesday, April 8th. Bank of America lowered their target price on Frontier Group from $4.75 to $4.00 and set a "neutral" rating for the company in a research report on Tuesday, July 1st. Susquehanna cut their price target on Frontier Group from $9.00 to $3.00 and set a "neutral" rating for the company in a research note on Monday, April 7th. Finally, Citigroup decreased their target price on Frontier Group from $7.25 to $4.00 and set a "neutral" rating for the company in a research report on Friday, April 11th. Nine equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, Frontier Group presently has an average rating of "Hold" and an average price target of $5.67.

Insider Activity at Frontier Group

In related news, SVP Alexandre Clerc sold 12,000 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $3.89, for a total value of $46,680.00. Following the transaction, the senior vice president directly owned 11,912 shares of the company's stock, valued at approximately $46,337.68. This represents a 50.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 48.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Frontier Group

A hedge fund recently raised its stake in Frontier Group stock. AQR Capital Management LLC boosted its holdings in Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) by 46.0% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 18,777 shares of the company's stock after buying an additional 5,913 shares during the period. AQR Capital Management LLC's holdings in Frontier Group were worth $81,000 as of its most recent SEC filing.

About Frontier Group

Frontier Group Holdings, Inc, provides low-fare passenger airline services to leisure travelers in the United States and Latin America. The company sells its products through direct distribution channels, including its website, mobile app, and contact centers. As of December 31, 2023, it had a fleet of 136 Airbus single-aisle aircrafts.

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