Frontline (NYSE:FRO) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Frontline (NYSE:FRO) announced its quarterly earnings data on Friday. The shipping company reported $1.03 earnings per share for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.10), Zacks reports. Frontline had a net margin of 12.23% and a return on equity of 8.89%. During the same quarter last year, the firm posted $0.20 earnings per share. The firm’s revenue was up 46.7% on a year-over-year basis.

Here are the key takeaways from Frontline’s conference call:

• Frontline reported strong Q4 results with $228 million profit (adjusted $230 million) driven by higher TCE earnings (up to $424.5 million) and lower operating and finance costs.
• The company has high near-term revenue visibility with 92% of VLCC days for early Q1 2026 booked at $107,100/day (83% Suezmax at $76,700/day, 67% LR2/Aframax at $62,400/day).
• Frontline sold eight older VLCCs for $831.5 million (net proceeds ~$477 million) and agreed to buy nine latest-generation scrubber-fitted Eco VLCC newbuilds for $1.224 billion, to be financed ~60% with long-term debt.
• The balance sheet is solid with $705 million in liquidity (including undrawn revolver), no meaningful debt maturities until 2030, and a stated cash-generation potential of $2.8 billion (~$12.51/share) at current rates.
• Management sees a fundamentally tight market (sanctions/dark fleet dynamics, compliant-molecule growth, aging fleet) that supports high freight, but warns of extreme volatility and seasonal/geo‑political risks that could produce sharp moves.

Frontline Stock Up 1.7%

Frontline stock traded up $0.63 during trading on Friday, hitting $37.91. 6,850,923 shares of the company were exchanged, compared to its average volume of 3,436,679. Frontline has a 52 week low of $12.40 and a 52 week high of $37.97. The company has a current ratio of 1.37, a quick ratio of 1.37 and a debt-to-equity ratio of 1.27. The business’s 50 day moving average is $27.06 and its 200 day moving average is $24.27. The company has a market capitalization of $8.44 billion, a P/E ratio of 38.68 and a beta of 0.07.

Wall Street Analyst Weigh In

FRO has been the topic of a number of analyst reports. Jefferies Financial Group increased their price target on Frontline from $28.00 to $30.00 and gave the company a “buy” rating in a research note on Friday, November 21st. BTIG Research boosted their price objective on shares of Frontline from $35.00 to $42.00 and gave the stock a “buy” rating in a research note on Friday. Piper Sandler lowered Frontline to a “neutral” rating in a report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Frontline in a research report on Monday, December 29th. Finally, Evercore restated an “outperform” rating on shares of Frontline in a research report on Friday. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $27.62.

Hedge Funds Weigh In On Frontline

Several institutional investors have recently added to or reduced their stakes in the stock. Balyasny Asset Management L.P. boosted its stake in Frontline by 28.3% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,560,908 shares of the shipping company’s stock worth $25,614,000 after purchasing an additional 344,706 shares during the period. Bank of America Corp DE grew its position in Frontline by 4.0% during the second quarter. Bank of America Corp DE now owns 630,661 shares of the shipping company’s stock valued at $10,349,000 after acquiring an additional 24,195 shares during the last quarter. Raymond James Financial Inc. boosted its position in Frontline by 62.2% during the second quarter. Raymond James Financial Inc. now owns 28,062 shares of the shipping company’s stock valued at $460,000 after buying an additional 10,765 shares during the period. Canada Pension Plan Investment Board boosted its stake in shares of Frontline by 11.7% during the second quarter. Canada Pension Plan Investment Board now owns 86,504 shares of the shipping company’s stock valued at $1,429,000 after purchasing an additional 9,051 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Frontline by 10.3% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 739,786 shares of the shipping company’s stock valued at $12,142,000 after acquiring an additional 69,152 shares during the last quarter. Institutional investors own 22.70% of the company’s stock.

About Frontline

Frontline Ltd. (NYSE:FRO) is a leading global shipping company specializing in the seaborne transportation of crude oil and petroleum products. The company’s core business activities encompass the ownership and operation of very large crude carriers (VLCCs), Suezmax tankers and Aframax vessels. Through long-term charters, spot market operations and time charters, Frontline provides flexible shipping solutions that cater to a diverse set of energy producers, refiners and trading houses worldwide.

Frontline’s fleet is geared toward high-capacity, ocean-going tankers capable of carrying large volumes of crude oil over intercontinental distances.