Frontline Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Frontline (NYS: FRO) reported earnings on May 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Frontline beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.


Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
Frontline chalked up revenue of $108.8 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $100.7 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $234.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.15 per share. GAAP EPS of $0.09 for Q1 were 55% lower than the prior-year quarter's $0.20 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.2%, 130 basis points better than the prior-year quarter. Operating margin was 8.7%, 390 basis points worse than the prior-year quarter. Net margin was 4.3%, 230 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $105.5 million. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $384.4 million. The average EPS estimate is -$0.68.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Frontline is underperform, with an average price target of $4.37.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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