Frontline to Report Q1 Earnings: What's in Store for the Stock?

Frontline Plc FRO is scheduled to report its first-quarter 2025 results on May 23, before the market opens.

The Zacks Consensus Estimate for earnings per share is currently pegged at 18 cents. The figure has remained stable over the past 60 days.

FRO’s earnings have missed the Zacks Consensus Estimate in three of the last four quarters and met once, the average miss being 10%.

Frontline Price and EPS Surprise

Frontline price-eps-surprise | Frontline Quote

Against this backdrop, let us take a look at the factors that might have shaped the company’s March-quarter performance.

FRO’s performance in the first quarter is expected to have been affected by supply-chain disruptions. We also expect the company’s bottom-line performance to have been hit by escalated voyage operating costs. Geopolitical risks pose operational challenges and might hurt results.

Low spot tanker rates are also expected to be reflected in the first-quarter results. We expect an update from the management on the current tariff-related scenario.

On a brighter note, continued fleet expansion initiatives are likely to have driven the company’s performance. Reduced container availability due to Red Sea tensions is expected to have raised freight costs. This is anticipated to have aided the quarterly performance of FRO, which provides services to East Mediterranean and Israeli ports. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings in the to-be-reported quarter.

What Does the Zacks Model Say About FRO?

The proven Zacks model does not conclusively predict an earnings beat for FRO 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, which is not the case here.

FRO’s Earnings ESP: Frontline has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FRO’s Zacks Rank: FRO currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Q1 Performances of Other Transportation Companies

United Airlines’ UAL first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share. 

Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% to $11.9 billion. The actual figure was short of our passenger revenue estimate of $12.5 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year.

Delta Air Lines DAL reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.

Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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