Benzinga | Feb 18, 2021 10:03AM EST

Earnings Outlook for Frontline

Frontline (NYSE:FRO) announces its next round of earnings this Friday, February 19. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Frontline will report earnings of $0.32 per share on revenue of $184.43 million. Frontline earnings in the same period a year ago was $0.54 per share. Quarterly sales came in at $338.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 40.74% decline in the company's EPS figure. Sales would be down 45.43% on a year-over-year basis. Frontline's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.32 1.04 0.90 0.69EPS Actual 0.29 1.04 0.91 0.54Revenue Estimate 184.43 M 345.89 M 300.79 M 254.01 MRevenue Actual 247.41 M 387.08 M 411.82 M 338.00 M

Stock Performance

Shares of Frontline were trading at $7.545 as of February 17. Over the last 52-week period, shares are down 9.59%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Frontline is scheduled to hold the call at 09:00:00 ET and can be accessed here.