The 10-second takeaway
For the quarter ended June 30 (Q2), Frontline beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share contracted.
Margins expanded across the board.
Frontline reported revenue of $109.6 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $107.3 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $219.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.14. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.07 per share. GAAP EPS were -$0.31 for Q2 compared to -$0.45 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.3%, 440 basis points better than the prior-year quarter. Operating margin was 5.1%, 10 basis points better than the prior-year quarter. Net margin was -13.8%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $77.4 million. On the bottom line, the average EPS estimate is -$0.45.
Next year's average estimate for revenue is $376.0 million. The average EPS estimate is -$1.01.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Frontline is underperform, with an average price target of $4.39.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.