Frontline Plc Down 7.88% To $19.84 After Earnings Miss

Frontline Plc (FRO) reported less than expected earnings this morning for Q3 2023.

Frontline Plc's earnings came in at an EPS of $0.36 per share, 20% lower than estimates for an EPS of $0.45 per share. The firm's earnings are down 3% since reporting $0.37 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $249.4 million. The Energy company managed to surpass those expectations for its third quarter with revenue of $377.1 million, a positive revenue surprise of $127.7 million (51%). The firm managed negative 1% growth year-over-year due to Frontline Plc reporting quarterly revenue of $382.2 million in its year-ago quarter. Frontline Plc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 7.88% to $19.84 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Frontline Plc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 95, putting Frontline Plc in the top 25% of stocks. The firm was recently trading at a 52-week high of $22.95 on November 6, 2023 and set a 52-week low on January 4, 2023 at $10.55.

Frontline Ltd is a shipping company engaged in the seaborne transportation of crude oil and oil products. Group operates through the tankers segment. The tankers segment includes crude oil tankers and product tankers. Its geographical area of operation includes Arabian Gulf, West African, the North Sea, and the Caribbean. Frontline earns revenue through voyage charters, time charters, and a finance lease. It is also involved in the charter, purchase, and sale of vessels.