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Frontline (FRO) to Report Q3 Earnings: What's in the Offing?

Frontline Ltd. FRO is scheduled to release third-quarter 2020 results on Nov 25.

Notably, the Zacks Consensus Estimate for third-quarter earnings per share has declined 2.8% to 35 cents over the past 60 days.

Frontline Ltd. Price and EPS Surprise

Frontline Ltd. price-eps-surprise | Frontline Ltd. Quote

Against this backdrop, let’s delve into the factors that might have impacted the company’s September-quarter performance.

Frontline’s performance in the to-be-reported quarter is expected to have been affected by the coronavirus-induced supply-chain disruptions. Moreover, demand for oil and gas is still suppressed, thereby reducing the need for tankers. In fact, while releasing second-quarter results management had warned of a depressed tanker market for the remainder of 2020.

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 increase in demand for transportation following the re-opening of economic activities is likely to aid results and boost the company’s operating revenues.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat 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 #3, currently.

Highlights of Q2 Earnings    

In the last reported quarter, the company’s earnings (excluding 3 cents from non-recurring items) of $1.04 surpassed the Zacks Consensus Estimate of 98 cents. Moreover, the bottom line skyrocketed more than 100% year over year. However, revenues of $301.1 million fell short of the Zacks Consensus Estimate of $315.3 million.

Snapshots of Sectorial Releases

Below we present the third-quarter reports of three top-ranked companies in the Zacks Transportation sector.

United Parcel Service’s UPS third-quarter 2020 earnings (excluding 4 cents from non-recurring items) per share of $2.28 surpassed the Zacks Consensus Estimate of $1.86. The bottom line also improved 10.1% year over year. UPS, currently carrying a Zacks Rank #2, generated $21,238 million revenues in the quarter, which outpaced the Zacks Consensus Estimate of $20,079.6 million.

Expeditors International of Washington’s EXPD third-quarter 2020 earnings of $1.12 per share surpassed the Zacks Consensus Estimate of 98 cents and improved 21.7% on a year-over-year basis too. The top line not only rose 18.8% year over year to $2,464.8 million but also surpassed the Zacks Consensus Estimate of $2,315.1 million. The stock currently carries a Zacks Rank of 2.

Knight-Swift Transportation Holdings’ KNX third-quarter 2020 earnings (excluding 8 cents from non-recurring items) of 79 cents per share surpassed the Zacks Consensus Estimate of 63 cents. Moreover, the bottom line surged 64.6% year over year. Total revenues of $1,210.4 million beat the Zacks Consensus Estimate of $1,160.9 million and also increased marginally year over year, driven by higher revenues in the Trucking and Logistics segment. The stock currently sports a Zacks Rank #1.

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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
Frontline Ltd. (FRO): Free Stock Analysis Report
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