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Frontline (FRO) to Post Q4 Earnings: What's in the Offing?
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Frontline Ltd. (FRO - Free Report) is scheduled to release fourth-quarter 2022 earnings on Feb 28.
The Zacks Consensus Estimate for fourth-quarter earnings has been revised 4.14% upward to $1.18 per share over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted Frontline’s December-quarter performance.
FRO’s performance in the fourth 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 are likely to have hurt the bottom line. Steep fuel costs are likely to have flared up total expenses.
However, high tanker rates are likely to have aided the top-line performance. Moreover, with the gradual resumption of economic activities, world trade gained pace, which should aid the fourth-quarter results of shipping stocks like Frontline. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Earnings Whispers
Our proven 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 odds of a positive surprise. However, that is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Frontline has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontline carries a Zacks Rank # 3 currently.
Q4 Performances of Some Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air travel demand. The optimistic air travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario as air travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased by more than 41.87% on a year-over-year basis.
CSX Corporation’s (CSX - Free Report) fourth-quarter earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.
Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes and increases in storage and other revenues. Overall revenues per unit increased by 11%.
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Frontline (FRO) to Post Q4 Earnings: What's in the Offing?
Frontline Ltd. (FRO - Free Report) is scheduled to release fourth-quarter 2022 earnings on Feb 28.
The Zacks Consensus Estimate for fourth-quarter earnings has been revised 4.14% upward to $1.18 per share over the past 60 days.
Against this backdrop, let’s delve into the factors that might have impacted Frontline’s December-quarter performance.
FRO’s performance in the fourth 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 are likely to have hurt the bottom line. Steep fuel costs are likely to have flared up total expenses.
However, high tanker rates are likely to have aided the top-line performance. Moreover, with the gradual resumption of economic activities, world trade gained pace, which should aid the fourth-quarter results of shipping stocks like Frontline. This is because the shipping industry is responsible for transporting several goods involved in world trade.
Earnings Whispers
Our proven 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 odds of a positive surprise. However, that is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Frontline has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Frontline carries a Zacks Rank # 3 currently.
Q4 Performances of Some Transportation Companies
United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.
Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air travel demand. The optimistic air travel demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.
Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario as air travel demand was not so buoyant then.
DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased by more than 41.87% on a year-over-year basis.
CSX Corporation’s (CSX - Free Report) fourth-quarter earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.
Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. The top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes and increases in storage and other revenues. Overall revenues per unit increased by 11%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.