We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Frontline (FRO) to Report Q4 Earnings: What's in Store?
Read MoreHide Full Article
FrontlineLtd. (FRO - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 19.
The company has a disappointing earnings surprise history, having delivered a negative surprise in three of the last four quarters (reporting better-than-expected earnings per share in the remaining quarter), the average miss being 9.3%.
Moreover, the Zacks Consensus Estimate for fourth-quarter loss per share has widened to a loss of 5 cents per share from 2 cents over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted the company’s December-quarter performance.
We expect Frontline’s December-quarter performance to have been hurt by the sharp reduction in the volume of crude oil stored on ships. Moreover, the supply glut of vessels available for hire following the unexpected cuts from Saudi Arabia is also anticipated to have dented the performance in the final quarter of 2020. This depressing scenario for the oil tanker market does not bode well for Frontline’s to-be-reported results.
However, decreased voyage operating expenses on a year-over-year basis amid the coronavirus-led lower fleet utilization are likely to have boosted the bottom line in the to-be-reported quarter. Moreover, the gradual recovery in demand for oil is likely to aid results and boost the company’s operating revenues.
What the Zacks Model Unveils
Our proven model does not conclusively predict a bottom-line outperformance for Frontline this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Frontline has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
In the last reported quarter, the company’s earnings of 29 cents per share fell short of the Zacks Consensus Estimate of 35 cents. However, the bottom line came against the year-ago loss of 6 cents. Meanwhile, revenues of $177.8 million fell shy of the Zacks Consensus Estimate of $188.1 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Golar LNG Limited (GLNG - Free Report) , Herc Holdings Inc. (HRI - Free Report) and WestinghouseAir Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Golar LNG has an Earnings ESP of +50.00% and a Zacks Rank #3 currently. The company will release fourth-quarter earnings on Feb 25.
Herc Holdings has an Earnings ESP of +9.63% and a Zacks Rank #2, presently. The company will announce fourth-quarter results on Feb 18.
Wabtec has an Earnings ESP of +1.90% and is currently Zacks #3 Ranked. The company is set to release fourth-quarter results on Feb 18
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Frontline (FRO) to Report Q4 Earnings: What's in Store?
FrontlineLtd. (FRO - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 19.
The company has a disappointing earnings surprise history, having delivered a negative surprise in three of the last four quarters (reporting better-than-expected earnings per share in the remaining quarter), the average miss being 9.3%.
Frontline Ltd. Price and EPS Surprise
Frontline Ltd. price-eps-surprise | Frontline Ltd. Quote
Moreover, the Zacks Consensus Estimate for fourth-quarter loss per share has widened to a loss of 5 cents per share from 2 cents over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted the company’s December-quarter performance.
We expect Frontline’s December-quarter performance to have been hurt by the sharp reduction in the volume of crude oil stored on ships. Moreover, the supply glut of vessels available for hire following the unexpected cuts from Saudi Arabia is also anticipated to have dented the performance in the final quarter of 2020. This depressing scenario for the oil tanker market does not bode well for Frontline’s to-be-reported results.
However, decreased voyage operating expenses on a year-over-year basis amid the coronavirus-led lower fleet utilization are likely to have boosted the bottom line in the to-be-reported quarter. Moreover, the gradual recovery in demand for oil is likely to aid results and boost the company’s operating revenues.
What the Zacks Model Unveils
Our proven model does not conclusively predict a bottom-line outperformance for Frontline this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. But that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Frontline has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontline carries a Zacks Rank #5 (Strong Sell) currently.
Highlights of Q3 Earnings
In the last reported quarter, the company’s earnings of 29 cents per share fell short of the Zacks Consensus Estimate of 35 cents. However, the bottom line came against the year-ago loss of 6 cents. Meanwhile, revenues of $177.8 million fell shy of the Zacks Consensus Estimate of $188.1 million.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Golar LNG Limited (GLNG - Free Report) , Herc Holdings Inc. (HRI - Free Report) and Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB - Free Report) , as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Golar LNG has an Earnings ESP of +50.00% and a Zacks Rank #3 currently. The company will release fourth-quarter earnings on Feb 25.
Herc Holdings has an Earnings ESP of +9.63% and a Zacks Rank #2, presently. The company will announce fourth-quarter results on Feb 18.
Wabtec has an Earnings ESP of +1.90% and is currently Zacks #3 Ranked. The company is set to release fourth-quarter results on Feb 18
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>