NEW YORK (TheStreet) -- Frontline (FRO) stock is moving lower Tuesday after the company warned of a weaker second quarter. In a statement, the company said, "The recent negative development in the tanker market is likely to give a weaker operating result (excluding one time gains and losses) in the second quarter."
Earlier, the Bermuda-based shipping company reported stronger-than-expected first-quarter results. Over the three months to March, the company earned 4 cents a share, a nickel higher than analysts surveyed by Thomson Reuters expected.
By late morning, shares had tumbled 16.1% to $2.40.
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TheStreet Ratings team rates FRONTLINE LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTLINE LTD (FRO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins."
- You can view the full analysis from the report here: FRO Ratings Report