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

Zacks Equity Research

Frontline Ltd. FRO is scheduled to release third-quarter 2019 results on Nov 27, before market open.

The Zacks Consensus Estimate for the September quarter has been revised to break-even earnings from a loss of 1 cent over the past 30 days.

Highlights of Q2 Earnings

In the last reported quarter, Frontline’s adjusted earnings of 2 cents per share surpassed the Zacks Consensus Estimate of a breakeven. Moreover, the bottom line improved on a year-over-year basis.

Given this backdrop, let’s delve into the factors that might have impacted the company’s performance in the quarter to be reported.

Key Catalysts

Oil tanker rates are expected to have been high in the third quarter. The company's impending quarterly results might reflect this increase. For instance, VLCC rates rose following the attacks on Saudi oil installations in September.

Moreover, voyage expenses might have been low in the third quarter, which in turn, is likely to have aided the company’s bottom line as was the case with another shipping company Danaos Corporation DAC, which released third-quarter earnings on Nov 4.

Also, the 8.5% decline in oil prices during the July-September period is likely to have favored the bottom line at Frontline. However, the company might have incurred higher ship operating expenses and costs pertaining to charter hire in the period. Consequently, the bottom line is expected to reflect the impact of these increased costs in the to-be-reported results.

Frontline Ltd. Price and EPS Surprise

 

Frontline Ltd. Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven Zacks 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 chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Frontline has an Earnings ESP of 0.00% as the Zacks Consensus Estimate is in line with the Most Accurate Estimate.

Zacks Rank: Frontline sports a Zacks Rank of 1, which increases the predictive power of ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies with the right combination of elements to beat on earnings in their upcoming releases.

Golar LNG GLNG has an Earnings ESP of +16.52% and a Zacks Rank #3. The company will announce third-quarter earnings results on Nov 26.

Jacobs Engineering Group JEC has an Earnings ESP of +1.22% and a Zacks Rank #2. The company will announce third-quarter fiscal 2019 (ended Sep 28, 2019) earnings results on Nov 25.

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Golar LNG Limited (GLNG) : Free Stock Analysis Report
 
Danaos Corporation (DAC) : Free Stock Analysis Report
 
Frontline Ltd. (FRO) : Free Stock Analysis Report
 
Jacobs Engineering Group Inc. (JEC) : Free Stock Analysis Report
 
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