Frontline: Strong 2Q But Weaker 3Q Expected

Frontline Ltd. (NYSE: FRO) reported 2Q EPS of $0.92 (excluding a $0.12 gain from sale) ahead of consensus of $0.67 and Oppenheimer's estimate of $0.80, primarily driven by lower operating/charter hire expenses, according to Oppenheimer.

Frontline also declared a $0.75/share dividend, in-line with expectations and the last quarter, while weaker 3Q rates and likely reductions in 3Q consensus estimates could pressure the stock near term, Oppenheimer reports.

Oppenheimer expects seasonal 4Q upside to be likely, and eludes to October being the better time to purchase stock.

Perform rating is maintained for Frontline Ltd., which closed yesterday at $26.70.

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