Frontline (FRO) to Post Q3 Earnings: What's in the Offing?
Frontline Ltd. FRO is scheduled to release third-quarter 2023 earnings on Nov 30. The Zacks Consensus Estimate for third-quarter earnings has been revised 4.2% upward to 46 cents per share over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted Frontline’s September-quarter performance.
FRO’s quarterly performance is expected to have been affected by supply-chain disruptions. High operating expenses due to increased average number of vessels in its fleet and fuel expenses are likely to have hurt the bottom line. Oil price jumped 28.5% in the July-September period due to an extension of production cut by Saudi Arabia and Russia through the current-year end.
However, favorable tanker rates are likely to have aided the top-line performance. With the normalization of economic activities, world trade gained pace, which should aid third-quarter results of shipping stocks like Frontline. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Earnings Whispers
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. However, that is not the case here.
Earnings ESP: Frontline currently has an Earnings ESP of 0.00% (the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 46 cents). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontline sports a Zacks Rank # 1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Q3 Performance of Some Other Transportation Companies
J.B. Hunt Transport Services’ JBHT third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines DAL reported third-quarter 2023 EPS (excluding 31 cents from nonrecurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million beat the Zacks Consensus Estimate of $15,290.4 million and improved 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group ALK reported third-quarter 2023 EPS of $1.83, which fell short of the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million missed the Zacks Consensus Estimate of $2,876.1 million. Yet, the top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Frontline PLC (FRO) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
