Frontier Group (NASDAQ:ULCC) Announces Quarterly Earnings Results, Misses Estimates 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 earnings results on Tuesday. The company reported ($0.31) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.03), Briefing.com reports. Frontier Group had a negative net margin of 0.87% and a negative return on equity of 12.56%. The company had revenue of $929.00 million during the quarter, compared to the consensus estimate of $951.92 million. During the same quarter in the previous year, the company earned $0.14 earnings per share. The business's revenue was down 4.5% on a year-over-year basis. Frontier Group updated its Q3 2025 guidance to -0.420--0.260 EPS.

Frontier Group Price Performance

NASDAQ ULCC traded up $0.02 during trading hours on Friday, hitting $3.34. The company had a trading volume of 3,550,601 shares, compared to its average volume of 3,803,877. Frontier Group has a 52 week low of $2.79 and a 52 week high of $10.26. The firm has a 50 day simple moving average of $3.93 and a 200 day simple moving average of $4.95. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.45 and a current ratio of 0.41. The firm has a market capitalization of $762.02 million, a price-to-earnings ratio of -20.88 and a beta of 2.62.

Insider Buying and Selling at Frontier Group

In related news, SVP Alexandre Clerc sold 12,000 shares of the firm's stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $3.89, for a total transaction 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 trade represents a 50.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 48.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Frontier Group

A hedge fund recently raised its stake in Frontier Group stock. Goldman Sachs Group Inc. lifted its position in shares of Frontier Group Holdings, Inc. (NASDAQ:ULCC - Free Report) by 33.0% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,013,456 shares of the company's stock after buying an additional 251,509 shares during the period. Goldman Sachs Group Inc. owned about 0.44% of Frontier Group worth $4,398,000 as of its most recent SEC filing.

Analyst Ratings Changes

ULCC has been the topic of several recent analyst reports. Morgan Stanley dropped their price target on Frontier Group from $10.00 to $9.00 and set an "equal weight" rating on the stock in a research note on Monday, May 19th. Evercore ISI dropped their price target on Frontier Group from $7.00 to $5.00 and set an "in-line" rating on the stock in a research note on Friday, April 11th. UBS Group dropped their price target on Frontier Group from $4.00 to $3.50 and set a "neutral" rating on the stock in a research note on Wednesday. Citigroup dropped their price target on Frontier Group from $7.25 to $4.00 and set a "neutral" rating on the stock in a research note on Friday, April 11th. Finally, Bank of America dropped their price target on Frontier Group from $4.75 to $4.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 1st. Nine investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $5.61.

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.