Frontline (NYSE:FRO) Issues Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Frontline (NYSE:FRO - Get Free Report) released its quarterly earnings data on Friday, May 22nd. The shipping company reported $1.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.58 by ($0.03), FiscalAI reports. The business had revenue of $714.24 million during the quarter, compared to the consensus estimate of $579.59 million. Frontline had a net margin of 36.70% and a return on equity of 27.80%. The business's revenue was up 66.9% compared to the same quarter last year. During the same period last year, the company posted $0.18 earnings per share.

Here are the key takeaways from Frontline's conference call:

• Frontline posted a very strong Q1 2026 result with profit of $559 million ($2.51/share) and adjusted profit of $344.9 million ($1.55/share), driven largely by higher time charter earnings.
• Near-term charter rates are exceptional: the company said 82% of VLCC days, 79% of Suezmax days, and 68% of LR2/Aframax days are already booked for Q2 at very high rates, with “six digits across the board” commentary on the outlook.
• Liquidity remains solid, with $945 million of cash and available liquidity and no meaningful debt maturities until 2030; remaining newbuilding commitments are $925 million, partially offset by up to $737 million of financing secured.
• Management believes tanker market fundamentals remain tight despite the Strait of Hormuz disruption, pointing to longer trade routes, reduced effective fleet availability, and continued demand for compliant tonnage as supportive of freight rates.
• Frontline is adding some protection against downside risk by increasing short-term time-charter coverage, particularly in VLCCs, covering close to 30% of voyage days over the next 12 months while still maintaining meaningful spot exposure.

Frontline Price Performance

Shares of FRO traded down $0.33 during midday trading on Monday, hitting $34.84. 1,325,240 shares of the company traded hands, compared to its average volume of 3,568,054. 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 52 week low of $16.25 and a 52 week high of $39.89. The firm has a 50 day moving average of $36.04 and a 200-day moving average of $30.61. The stock has a market cap of $7.76 billion, a price-to-earnings ratio of 8.58 and a beta of 0.02.

Frontline Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Friday, June 12th will be issued a dividend of $1.55 per share. This is a boost from Frontline's previous quarterly dividend of $1.03. The ex-dividend date of this dividend is Friday, June 12th. This represents a $6.20 annualized dividend and a dividend yield of 17.8%. Frontline's payout ratio is currently 152.71%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FRO. Royal Bank of Canada lifted its holdings in shares of Frontline by 32.3% in the 1st quarter. Royal Bank of Canada now owns 26,342 shares of the shipping company's stock valued at $392,000 after acquiring an additional 6,424 shares during the last quarter. Millennium Management LLC purchased a new stake in Frontline in the 1st quarter worth about $7,587,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Frontline by 12.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 185,226 shares of the shipping company's stock worth $2,751,000 after purchasing an additional 20,370 shares during the period. American Century Companies Inc. raised its position in Frontline by 93.6% in the 2nd quarter. American Century Companies Inc. now owns 72,539 shares of the shipping company's stock worth $1,190,000 after purchasing an additional 35,078 shares during the period. Finally, Invesco Ltd. raised its position in Frontline by 215.8% in the 2nd quarter. Invesco Ltd. now owns 91,039 shares of the shipping company's stock worth $1,494,000 after purchasing an additional 62,210 shares during the period. Institutional investors own 22.70% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on FRO. Dnb Carnegie lowered shares of Frontline from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 2nd. Weiss Ratings upgraded shares of Frontline from a "hold (c+)" rating to a "buy (b)" rating in a research note on Friday, May 22nd. Pareto Securities lowered shares of Frontline from a "buy" rating to a "hold" rating and set a $39.46 target price for the company. in a research note on Monday, May 25th. Danske lowered shares of Frontline to a "hold" rating in a research note on Tuesday, May 26th. Finally, Evercore lowered shares of Frontline from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 21st. Four research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $39.12.

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.