Frontline (NYSE:FRO) Posts Earnings Results, Misses Estimates By $0.10 EPS

by · The Markets Daily

Frontline (NYSE:FRO – Get Free Report) announced its quarterly earnings results on Friday. The shipping company reported $1.03 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.10), Zacks reports. Frontline had a net margin of 12.23% and a return on equity of 8.89%. During the same period in the previous year, the firm earned $0.20 earnings per share. The firm’s revenue was up 46.7% on a year-over-year basis.

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

  • Frontline reported strong Q4 results with $228 million profit (adjusted $230 million) driven by higher TCE earnings (up to $424.5 million) and lower operating and finance costs.
  • The company has high near-term revenue visibility with 92% of VLCC days for early Q1 2026 booked at $107,100/day (83% Suezmax at $76,700/day, 67% LR2/Aframax at $62,400/day).
  • Frontline sold eight older VLCCs for $831.5 million (net proceeds ~$477 million) and agreed to buy nine latest-generation scrubber-fitted Eco VLCC newbuilds for $1.224 billion, to be financed ~60% with long-term debt.
  • The balance sheet is solid with $705 million in liquidity (including undrawn revolver), no meaningful debt maturities until 2030, and a stated cash-generation potential of $2.8 billion (~$12.51/share) at current rates.
  • Management sees a fundamentally tight market (sanctions/dark fleet dynamics, compliant-molecule growth, aging fleet) that supports high freight, but warns of extreme volatility and seasonal/geo‑political risks that could produce sharp moves.

Frontline Price Performance

Shares of Frontline stock traded up $0.63 on Friday, hitting $37.91. 6,851,429 shares of the company traded hands, compared to its average volume of 3,436,679. Frontline has a 12-month low of $12.40 and a 12-month high of $37.97. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.27. The company has a market cap of $8.44 billion, a P/E ratio of 38.68 and a beta of 0.07. The firm’s 50-day simple moving average is $27.06 and its 200 day simple moving average is $24.27.

Analyst Ratings Changes

A number of research firms have weighed in on FRO. BTIG Research lifted their target price on Frontline from $35.00 to $42.00 and gave the company a “buy” rating in a report on Friday. Clarkson Capital upgraded shares of Frontline from a “neutral” rating to a “buy” rating in a research report on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Frontline in a report on Monday, December 29th. Jefferies Financial Group increased their target price on shares of Frontline from $28.00 to $30.00 and gave the stock a “buy” rating in a research note on Friday, November 21st. Finally, Piper Sandler lowered shares of Frontline to a “neutral” rating in a research report on Friday. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Frontline presently has an average rating of “Hold” and a consensus target price of $27.62.

Check Out Our Latest Stock Report on FRO

Institutional Investors Weigh In On Frontline

A number of large investors have recently added to or reduced their stakes in the company. Virtu Financial LLC bought a new stake in Frontline during the fourth quarter worth about $398,000. Mackenzie Financial Corp purchased a new position in shares of Frontline during the 4th quarter valued at about $365,000. XTX Topco Ltd lifted its position in Frontline by 4.0% in the 4th quarter. XTX Topco Ltd now owns 29,773 shares of the shipping company’s stock worth $650,000 after buying an additional 1,145 shares during the last quarter. Voloridge Investment Management LLC bought a new stake in Frontline in the 4th quarter worth approximately $15,676,000. Finally, SummitTX Capital L.P. purchased a new stake in Frontline in the fourth quarter worth approximately $3,029,000. Hedge funds and other institutional investors own 22.70% of the company’s stock.

Frontline Company Profile

(Get Free Report)

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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