Latest news with #NCLH
Yahoo
a day ago
- Business
- Yahoo
Norwegian Cruise Line Holdings Ltd. (NCLH) is Attracting Investor Attention: Here is What You Should Know
Norwegian Cruise Line (NCLH) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this cruise operator have returned +6.3% over the past month versus the Zacks S&P 500 composite's +5.2% change. The Zacks Leisure and Recreation Services industry, to which Norwegian Cruise Line belongs, has gained 8.8% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Norwegian Cruise Line is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%. For the current fiscal year, the consensus earnings estimate of $2.05 points to a change of +12.6% from the prior year. Over the last 30 days, this estimate has changed -1.6%. For the next fiscal year, the consensus earnings estimate of $2.43 indicates a change of +18.8% from what Norwegian Cruise Line is expected to report a year ago. Over the past month, the estimate has changed -1.6%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Norwegian Cruise Line is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Norwegian Cruise Line, the consensus sales estimate for the current quarter of $2.55 billion indicates a year-over-year change of +7.5%. For the current and next fiscal years, $10.07 billion and $10.97 billion estimates indicate +6.2% and +9% changes, respectively. Norwegian Cruise Line reported revenues of $2.13 billion in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.07 for the same period compares with $0.16 a year ago. Compared to the Zacks Consensus Estimate of $2.15 billion, the reported revenues represent a surprise of -0.94%. The EPS surprise was -22.22%. Over the last four quarters, Norwegian Cruise Line surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Norwegian Cruise Line is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Norwegian Cruise Line. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-05-2025
- Business
- Yahoo
Why Is Norwegian Cruise Line (NCLH) Up 8.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Norwegian Cruise Line (NCLH). Shares have added about 8.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Norwegian Cruise Line due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. It turns out, estimates revision have trended upward during the past month. Currently, Norwegian Cruise Line has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Norwegian Cruise Line has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Norwegian Cruise Line is part of the Zacks Leisure and Recreation Services industry. Over the past month, Caesars Entertainment (CZR), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended March 2025 more than a month ago. Caesars Entertainment reported revenues of $2.79 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of -$0.54 for the same period compares with -$0.55 a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
23-05-2025
- Business
- Forbes
What's Next For Norwegian Cruise Stock?
Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images Norwegian Cruise Line stock's (NYSE: NCLH) 33% decline year-to-date is a significant deviation from the S&P 500 index's 0.6% drop. This situation highlights a general downturn within the cruise sector, as Carnival Corp has seen a reduction of 12%, Viking Holdings experienced a decline of 2%, and Royal Caribbean stock yielded a modest increase of 3%. Recently, Norwegian announced mixed Q1 results. Adjusted EPS was $0.07, falling short of the consensus estimate of $0.09, while revenue totaled $2.13 billion, slightly lower than the $2.15 billion forecast. The GAAP net loss amounted to $40.3 million. An occupancy rate of 101.5% met guidance yet showed a decline year-over-year, attributed to heightened dry-dock activities. Despite management acknowledging some 'softening' in forward bookings, the balance of advance ticket sales rose 2.6% year-over-year to $3.9 billion, indicating a persistent underlying demand. However, NCLH stock appears less appealing at its current price of approximately $17. We have several significant concerns regarding NCLH stock, which renders it less attractive despite its very low valuation. See Buy or Sell Norwegian Cruise stock? We arrive at this conclusion by analyzing the current valuation of NCLH stock against its operational performance in recent years, along with its present and historical financial status. Our evaluation of Norwegian Cruise Line based on essential criteria of Growth, Profitability, Financial Stability, and Downturn Resilience reveals that the company exhibits a very weak operating performance and financial condition, as outlined below. For investors desiring more stable returns with lower volatility, the Trefis High Quality Portfolio could prove to be a promising alternative, having outperformed the S&P 500 with over 91% returns since its inception. In terms of what you spend per dollar of sales or profit, NCLH stock seems inexpensive relative to the broader market. • Norwegian Cruise Line has a price-to-sales (P/S) ratio of 0.8, in contrast to a figure of 2.8 for the S&P 500 • Furthermore, the company's price-to-free cash flow (P/FCF) ratio is 3.9 against 17.6 for the S&P 500 • Additionally, it holds a price-to-earnings (P/E) ratio of 10.5 compared to the benchmark's 24.5 Norwegian Cruise Line's Revenues have demonstrated significant growth in recent years. • Its revenues have increased 10.9% from $8.5 billion to $9.5 billion over the past 12 months (in comparison to growth of 5.3% for the S&P 500) • Moreover, its quarterly revenues dipped 3% to $2.1 billion in the latest quarter compared to $2.2 billion a year earlier (versus a 4.9% improvement for the S&P 500) Norwegian Cruise Line's profit margins are around the median level for companies within the Trefis coverage area. • Norwegian Cruise Line's Operating Income over the previous four quarters was $1.5 billion, signifying a moderate Operating Margin of 15.5% (versus 13.1% for the S&P 500) • Norwegian Cruise Line's Operating Cash Flow (OCF) during this timeframe was $2.0 billion, indicating a moderate OCF Margin of 21.6% (in comparison to 15.7% for the S&P 500) • Over the last four-quarter period, Norwegian Cruise Line's Net Income amounted to $910 million, signifying a moderate Net Income Margin of 9.6% (versus 11.3% for the S&P 500) Norwegian Cruise Line's balance sheet appears to be very weak. • Norwegian Cruise Line's debt stood at $13 billion at the conclusion of the most recent quarter, while its market capitalization is $7.6 billion (as of 5/21/2025). This reflects a very poor Debt-to-Equity Ratio of 163.6% (compared to 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $185 million of the $21 billion in Total Assets for Norwegian Cruise Line. This results in a very poor Cash-to-Assets Ratio of 1.0% (against 15.0% for S&P 500) NCLH stock has performed considerably worse than the benchmark S&P 500 index during some recent downturns. As investors hope for a soft landing in the U.S. economy, what could the implications be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how major stocks fared during and after the last six market crashes. • NCLH stock plunged 69.2% from a peak of $33.71 on 8 June 2021 to $10.38 on 16 June 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock has not yet returned to its pre-Crisis peak • The highest point the stock has achieved since then is $29.07 on 30 January 2025 and currently trades at approximately $17.20 • NCLH stock diminished 87.0% from a high of $59.65 on 17 January 2020 to $7.77 on 18 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500 • The stock has not yet returned to its pre-Crisis peak In conclusion, Norwegian Cruise Line's performance across the outlined parameters is as follows: • Growth: Very Strong • Profitability: Neutral • Financial Stability: Extremely Weak • Downturn Resilience: Extremely Weak • Overall: Weak Thus, despite its very low valuation, we believe the stock is unattractive, which reinforces our assessment that NCLH is a poor investment choice. While it is advisable to refrain from acquiring NCLH stock at this time, you may consider exploring the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (comprising the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) in delivering robust returns for investors. What accounts for this? The quarterly balanced composition of large-, mid- and small-cap RV Portfolio stocks has provided a nimble method to capitalize on favorable market conditions while mitigating losses when the markets decline, as detailed in RV Portfolio performance metrics
Yahoo
21-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings Ltd. (NCLH) Is a Trending Stock: Facts to Know Before Betting on It
Norwegian Cruise Line (NCLH) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this cruise operator have returned +9.4% over the past month versus the Zacks S&P 500 composite's +12.7% change. The Zacks Leisure and Recreation Services industry, to which Norwegian Cruise Line belongs, has gained 18.7% over this period. Now the key question is: Where could the stock be headed in the near term? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Norwegian Cruise Line is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.7%. For the current fiscal year, the consensus earnings estimate of $2.05 points to a change of +12.6% from the prior year. Over the last 30 days, this estimate has changed -0.5%. For the next fiscal year, the consensus earnings estimate of $2.43 indicates a change of +18.8% from what Norwegian Cruise Line is expected to report a year ago. Over the past month, the estimate has changed -2.4%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Norwegian Cruise Line is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. In the case of Norwegian Cruise Line, the consensus sales estimate of $2.55 billion for the current quarter points to a year-over-year change of +7.5%. The $10.07 billion and $10.97 billion estimates for the current and next fiscal years indicate changes of +6.2% and +9%, respectively. Norwegian Cruise Line reported revenues of $2.13 billion in the last reported quarter, representing a year-over-year change of -2.9%. EPS of $0.07 for the same period compares with $0.16 a year ago. Compared to the Zacks Consensus Estimate of $2.15 billion, the reported revenues represent a surprise of -0.94%. The EPS surprise was -22.22%. Over the last four quarters, Norwegian Cruise Line surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Norwegian Cruise Line is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Norwegian Cruise Line. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
NCLH Q1 Earnings Call: Bookings Choppiness and Cost Discipline Shape Cruise Outlook
Cruise company Norwegian Cruise Line (NYSE:NCLH) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 2.9% year on year to $2.13 billion. Its non-GAAP profit of $0.07 per share was 23.8% below analysts' consensus estimates. Is now the time to buy NCLH? Find out in our full research report (it's free). Revenue: $2.13 billion vs analyst estimates of $2.14 billion (2.9% year-on-year decline, 0.7% miss) Adjusted EPS: $0.07 vs analyst expectations of $0.09 (23.8% miss) Adjusted EBITDA: $453.1 million vs analyst estimates of $439.5 million (21.3% margin, 3.1% beat) Management reiterated its full-year Adjusted EPS guidance of $2.05 at the midpoint EBITDA guidance for the full year is $2.72 billion at the midpoint, in line with analyst expectations Operating Margin: 9.4%, in line with the same quarter last year Free Cash Flow was -$846 million, down from $548.3 million in the same quarter last year Passenger Cruise Days: 5.79 million, down 325,127 year on year Market Capitalization: $8.56 billion Norwegian Cruise Line's first quarter performance reflected a mix of headwinds and operational discipline, as management navigated softer bookings in European itineraries and prioritized pricing over occupancy. CEO Harry Sommer cited 'choppiness' in Q3 Europe bookings, attributing it to greater American hesitancy for long-haul travel and macroeconomic uncertainty, but emphasized continued strong spend from guests once on board and solid demand for close-to-home Caribbean cruises. Looking ahead, management's guidance is anchored in cost efficiency initiatives and a focus on margin protection. The leadership team reiterated full-year adjusted EPS and EBITDA guidance, highlighting the $300 million cost efficiency program and the flexibility to accelerate cost savings if revenue pressures persist. CFO Mark Kempa stated that Norwegian Cruise Line's ability to 'flex if there's pressure on the top line' keeps the company on track for its long-term targets, even as the industry faces variable consumer sentiment. Norwegian Cruise Line's management provided detailed commentary on the primary factors impacting Q1 results and shared updates on strategic initiatives across the business. European Itinerary Weakness: Management identified a period of 'choppiness' in Q3 Europe bookings, especially among American travelers, which led to lower occupancy and pressured yield expectations. This was described as a temporary issue, with improvement observed in more recent booking trends. Pricing Over Occupancy: The company maintained its strategy to protect pricing, even at the expense of filling every available cabin. Leadership stressed that disciplined revenue management, particularly for close-in Caribbean itineraries, helped sustain higher year-over-year pricing despite booking volatility. New Product Delivery: Norwegian Aqua, the first ship in the new Prima Plus class, was delivered on time and on budget. The ship features redesigned spaces and new amenities, such as the Aqua slide coaster, which management believes will enhance guest experience and increase stateroom capacity. Great Stirrup Cay Enhancements: Significant upgrades to the company's private island in the Bahamas are underway, including a new pier, resort-style pool, and expanded family and adult zones. Management expects these investments to drive incremental on-board and destination revenue and improve the product's competitiveness. Cost Efficiency Program: The $300 million-plus cost savings effort, led by the transformation office, is being accelerated. Management said these initiatives have not reduced guest experience, and that cost reductions are being achieved through operational efficiencies, technology investments, and supply chain improvements. Management's outlook for the remainder of the year is shaped by disciplined pricing, capacity shifts, and continued execution on cost initiatives, amid uncertainty in booking trends for certain itineraries. Shift to Close-to-Home Cruises: Deployment is moving toward more Caribbean and short-haul itineraries, which tend to book closer to departure and attract new-to-cruise customers. This mix change is expected to support steady demand and operational efficiency. Margin Protection Focus: The cost efficiency program is expected to offset top-line pressures, with management reiterating guidance for margin expansion in 2025 and confidence in achieving long-term profitability targets. Macroeconomic and Booking Uncertainty: Ongoing macroeconomic uncertainty and consumer hesitancy, particularly for European travel, remain risks. Management highlighted flexibility to accelerate cost actions and adjust deployment in response to demand shifts. Matthew Boss (JP Morgan Chase): Asked about the impact of recent booking 'choppiness' on full-year guidance and whether current trends are sufficient to meet targets. Management said if current pace and pricing continue, guidance is achievable, but they are cautious about extrapolating short-term trends. Steve Wieczynski (Stifel): Inquired whether booking softness was isolated to specific brands or products. CEO Harry Sommer explained all three brands saw similar patterns, with Q3 Europe as the main area of weakness, but no structural issues elsewhere. Robin Farley (UBS): Questioned the year-over-year pricing and booked position given increased capacity and more close-to-home itineraries. CFO Mark Kempa replied that pricing is up and load factors are within historical norms, with only slight volatility in European itineraries. Ben Chaiken (Mizuho): Asked about the return on investment for Great Stirrup Cay enhancements and whether these can drive price and on-island spend. Management expressed confidence that these investments will meet ROI thresholds and increase guest throughput. Brandt Montour (Barclays): Sought clarity on why American travelers are particularly hesitant to book Europe and whether this is expected to persist into 2026. Management said hesitancy appears tied to macro uncertainty but noted no booking softness for 2026 European itineraries. Looking forward, the StockStory team will monitor (1) whether booking trends in Europe stabilize or require further promotional activity, (2) progress on cost efficiency measures and their impact on margins, and (3) guest response to the Norwegian Aqua launch and Great Stirrup Cay enhancements. Execution in these areas will be key to tracking Norwegian Cruise Line's ability to offset top-line headwinds and support its earnings targets. Norwegian Cruise Line currently trades at a forward P/E ratio of 9×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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