What Analysts Are Saying about Frontline’s Upcoming 2Q17 Results
Most crude oil tanker stocks haven’t had a good year so far. Frontline (FRO) is no exception. FRO stock hit a fresh 52-day low of $5.35 on June 20, 2017. As of July 6, 2017, the stock has fallen 18.9% since the start of the year. Let’s see what analysts have to say about Frontline’s upcoming 2Q17 results.
Interested in FRO? Don't miss the next report.
Receive e-mail alerts for new research on FRO
Revenue and earnings estimates
Wall Street analysts estimate that Frontline’s revenue will be ~$103.0 million in the second quarter compared to $177.1 million in 1Q17 and ~$191.0 million in 2Q16. Since revenue is expected to be lower, EBITDA (earnings before interest, tax, depreciation, and amortization) is also estimated to be lower. Analysts expect 2Q17 EBITDA to be $55.0 million compared to $76.0 million in 1Q17 and $72.0 million in 2Q16.
For 2017, analysts expect Frontline’s revenue to be $522.0 million, which is 30.8% lower than its 2016 revenue of $754.0 million. FRO’s 2017 EBITDA estimate stands at $245.0 million, which is lower than EBITDA of $271.0 million in 2016.
According to Reuters, the consensus rating for Frontline is 2.8, which means a “hold.” Below are the consensus ratings for other crude oil tanker companies:
- Teekay Tankers (TNK): 2.9, or a “hold”
- Euronav (EURN): 2.2, or a “buy”
- Nordic American Tankers (NAT): 3.9, or a “sell”
- Gener8 Maritime (GNRT): 2.0, or a “buy”
Six analysts have given recommendations for Frontline. None of those analysts have recommended a “strong buy” for the stock. One analyst has recommended a “buy.” Five have given it a “hold,” and none of them have given it a “sell” or “strong sell.”
The 12-month consensus target price is $6.50, which implies a potential upside of 14.2% compared to the market price of $5.70 on July 6, 2017.