Yahoo Finance Is a Beat in Store for Frontline (FRO) in Q1 Earnings?
Frontline Plc FRO is expected to report its first-quarter 2024 results on May 30 before market open.
FRO missed the Zacks Consensus Estimate for earnings in three of the last four quarters and met once, the average miss being 12.2%. The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter has improved 14.29% over the past 60 days.
Frontline PLC Price and EPS Surprise
Frontline PLC price-eps-surprise | Frontline PLC Quote
Against this backdrop, let’s take a look at the factors that may have shaped the company’s March-quarter performance.
Frontline’s performance in the first quarter is expected to have been affected by supply-chain disruptions. High operating expenses due to the increased average number of vessels in its fleet and fuel expenses are likely to have hurt the bottom line.
However, high tanker rates are likely to have aided the top-line performance. Moreover, with the resumption of economic activities, world trade gained pace, which is likely to aid the first-quarter results of shipping stocks like Frontline. This is because the shipping industry is responsible for transporting several goods involved in world trade.
The recent attacks by Yemen’s Houthi militants on vessels in the Red Sea have disrupted maritime trade. As a result, many shipping companies, including FRO, have hit the pause button as far as transit through this route is concerned.
Keeping the safety of the crew in mind, Frontline is adopting the longer and costlier route around the Cape of Good Hope in South Africa rather than through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight rates. Lower capacity is expected to boost earnings.
What Does the Zacks Model Say?
The proven Zacks model predicts an earnings beat for FRO this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Frontline plc currently has an Earnings ESP of +3.75% (the Most Accurate Estimate is currently pegged at 83 cents per share, whereas the Zacks Consensus Estimate is currently pegged at 80 cents per share). You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Frontline currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines’ DAL first-quarter 2024 earnings (excluding 39 cents from non-recurring items) of 45 cents per share comfortably beat the Zacks Consensus Estimate of $0.36 and improved 7.75% year over year.
Revenues of $13.75billion surpassed the Zacks Consensus Estimate of $12.84 billion and increased 7.75% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) came in at $12.6 billion, up 6% year over year.
United Airlines UAL reported a first-quarter 2024 loss (excluding 23 cents from non-recurring items) of 15 cents per share, narrower than the Zacks Consensus Estimate of 53 cents and improved 76.19% year over year.
Operating revenues of $12.54 billion beat the Zacks Consensus Estimate of $12.43 billion. The top line increased 9.71% year over year due to upbeat air travel demand. Cargo revenues fell 1.8% year over year to $391 million. Revenues from other sources jumped 10.3% year over year to $835 million.
J.B. Hunt Transport Services’ JBHT first-quarter 2024 earnings per share of $1.22 missed the Zacks Consensus Estimate of $1.53 and declined 35.45% year over year.
Total operating revenues of $2.94 billion lagged the Zacks Consensus Estimate of $3.12 billion and fell 9% year over year. Total operating revenues, excluding fuel surcharge revenues, decreased approximately 6.5% year over year.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Frontline PLC (FRO) : Free Stock Analysis Report
