Latest news with #NorwegianCruiseLineHoldingsLtd
Yahoo
16-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings' (NYSE:NCLH) Promising Earnings May Rest On Soft Foundations
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) announced strong profits, but the stock was stagnant. Our analysis suggests that this might be because shareholders have noticed some concerning underlying factors. We've discovered 1 warning sign about Norwegian Cruise Line Holdings. View them for free. Norwegian Cruise Line Holdings reported a tax benefit of US$139m, which is well worth noting. It's always a bit noteworthy when a company is paid by the tax man, rather than paying the tax man. We're sure the company was pleased with its tax benefit. However, our data indicates that tax benefits can temporarily boost statutory profit in the year it is booked, but subsequently profit may fall back. In the likely event the tax benefit is not repeated, we'd expect to see its statutory profit levels drop, at least in the absence of strong growth. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we have already discussed Norwegian Cruise Line Holdings reported that it received a tax benefit, rather than paying tax, in the last year. Given that sort of benefit is not recurring, a focus on the statutory profit might make the company seem better than it really is. Therefore, it seems possible to us that Norwegian Cruise Line Holdings' true underlying earnings power is actually less than its statutory profit. But the happy news is that, while acknowledging we have to look beyond the statutory numbers, those numbers are still improving, with EPS growing at a very high rate over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. In terms of investment risks, we've identified 1 warning sign with Norwegian Cruise Line Holdings, and understanding it should be part of your investment process. This note has only looked at a single factor that sheds light on the nature of Norwegian Cruise Line Holdings' profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings Ltd. (NCLH): Among Billionaire David E. Shaw's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against other billionaire David E. Shaw's small-cap stock picks with huge upside potential. David E. Shaw is one billionaire investor whose record speaks for itself on Wall Street. Having founded D.E. Shaw & Co., L.P. in 1988 with $28 million in capital, the fund has grown to become one of the most successful and biggest, with a 13F portfolio worth $136.27 billion. Amid the growth, Shaw's hedge fund D E Shaw has also returned significant returns to shareholders. The fund's flagship Composite fund has achieved an annualized net return of 12.7% since inception in 2001, as the Oculus Fund has averaged 13.7% annually since 2004 and has never had a negative year. Shaw's hedge fund was one of the earliest to leverage complex trading algorithms, followed by some form of human-run investing. Consequently, the multi-strategy fund remains the rage on Wall Street, given its solid returns over the years and the growing trend of returning gains to investors. READ ALSO: Billionaire Paul Tudor Jones' 10 Stocks Picks with Huge Upside Potential and Billionaire Quants' Two Sigma's 10 Stock Picks with Huge Upside Potential. Composite hedge fund gained 18% in 2024, with Oculus outperforming the overall market, soaring 36% and recording its best gain since inception. The better-than-expected returns come on Shaw and the other fund managers deploying systematic and computer-driven trading strategies to identify stocks trading at discounted valuations before they explode. Following the impressive performance in 2024, reports emerged that the hedge fund was planning to return billions of dollars to external clients, as has been the trend. Amid the impressive performance last year, D.E. Shaw & Co. finds itself at a crossroads as the overall stock market has turned bearish. Major US indices have pulled back by about 6% from record highs amid recession concerns and deteriorating macroeconomics attributed to the US trade war. The US Federal Reserve holding interest rates unchanged, waiting to see the impact of President Donald Trump's trade policy, continues to rattle sentiments in the equity market. The Federal Reserve held its benchmark rate unchanged at between 4.25% and 4.5%, much to the anguish of Trump. In its statement, the Fed noted the uncertainty around the economic outlook. 'Uncertainty about the economic outlook has increased further,' the statement said. 'The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have raised.' Acknowledging that tariffs could worsen inflation and hinder economic expansion, the statement introduces the likelihood of a stagflation scenario, a phenomenon that has been largely missing from the US economy since the early 1980s. Decision-makers have mostly concurred that the central bank is currently well-placed, as the economy is performing reasonably well at this time, to exercise patience while fine-tuning monetary policy. Amid the economic uncertainty, focus in the equity markets is slowly shifting towards small-cap stocks with significant upside potential. That's partly because large-cap stocks are under pressure after skyrocketing to record highs, resulting in valuations above historical norms. Billionaire David E. Shaw's portfolio boasts of solid small-cap stocks with tremendous upside potential. We combed D. E. Shaw's SEC Q4 2024 13F filings to identify Billionaire David E. Shaw's 10 Small-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with less than $10 billion in market cap and analyzed why the stocks stand out, as solid investments well poised to generate significant long-term value. Finally, we ranked the stocks in ascending order based on the stocks upside potential. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company that operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Its brands provide accommodations, multiple dining venues, bars and lounges, a spa, a casino, retail shopping areas, and entertainment choices. While the stock is down by about 35% year to date due to weakening cruise demand, it is still one of billionaire David E. Shaw's 10 small-cap stock picks with tremendous upside potential. Despite the lower demand, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is not planning to offer discounts to attract more ticket sales for its cruises. Instead, it prioritizes strong pricing in anticipation of normalizing demand. Additionally, it is accelerating cost-saving initiatives to maintain profitability. It has already identified about $300 million in potential efficiencies. The Miami-based operator delivered disappointing first-quarter 2025 results as revenues fell 3% year over year on softening demand to $2.13 billion compared to $2.15 billion a year ago. Adjusted earnings per share came in at $0.07, missing estimates of $0.09. Nevertheless, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) maintained its outlook for 2025, anticipating adjusted EPS of $2.05, increasing about 13% year-over-year. However, on May 1, BofA Securities cut Norwegian Cruise Line Holdings Ltd.'s (NYSE:NCLH) price target from $23.00 to $20.00, keeping a Neutral rating due to declining future bookings, economic uncertainty, and weaker travel demand. Overall, NCLH ranks 6th on our list of billionaire David E. Shaw's small-cap stock picks with huge upside potential. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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Yahoo
03-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings (NCLH): Among Billionaire Jim Simons' RenTech's Small-Cap Stock Picks with Huge Upside Potential
We recently published a list of . In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against Billionaire Jim Simons' RenTech's other small-cap stock picks with huge upside potential. Jim Simons was (and still is even after his death in May 2024) one of the biggest names – if not the biggest – in the hedge fund space. He was a gifted mathematician and had a successful career in academia before making a bold pivot to finance in the late 70s. In 1978, he founded Monemetrics (a currency trading firm) and Limroy (a hedge fund), which were collapsed into one entity in 1982 and renamed Renaissance Technologies Corporation. This entity had one major objective: to use quantitative, computer-driven models to exploit market inefficiencies. In other words, Simons and his team were committed to making investment decisions based on sophisticated algorithms. (RenTech) began as a hedge fund but later morphed into something bigger. It is now an investment management firm that operates several hedge funds. Its flagship offering is the Medallion Fund. The Medallion Fund is known for extraordinary returns. During the crash (early 2000s) and the financial crisis (2007-2011), Medallion's returns were 56.6% and 74.6%, respectively. Following the first two years of operation, the lowest annual return was 31.5%. READ ALSO: Billionaire Seth Klarman's 10 Stock Picks with Huge Upside Potential and Billionaire Andreas Halvorsen's 10 Stock Picks With Huge Upside Potential. The Medallion Fund's track record in the market, and by extension RenTech's, made Simons a lot of money. At death, he was worth $31.4 billion and ranked among the top 100 richest people in the world. And, as Simons often said, all of the success he had in the market comes down to the love of mathematics. Accordingly, the Medallion Fund has been capable of extraordinary returns mostly because the investment team – led by Simons – leveraged mathematics. The fund utilizes algorithm-based methods to identify patterns and leverage past data for investing decisions. That is why RenTech invested (and continues to invest) billions in intellectuals and professionals from fields like Mathematics, Computer Science, and Physics. In one of his last interviews, he said: 'We hired statisticians, physicists, astronomers, mathematicians — the important thing was that they were very smart.' Jim Simons was a generational talent when it came to investing. He started an investment business and led to heights that others can only dream of. And because his legacy lives in RenTech, it makes sense to want to know what companies they're invested in. We sifted through Renaissance Technologies' Q4 2024 SEC 13F filings to compile this list. We focused only on shares in companies and excluded interests in ETFs and options. Then, we picked the stocks with a market capitalization of $10 billion or less. From the result, we ranked the stocks based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 30). Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company that operates several brands, including its main Norwegian Cruise Line and luxury brands like Regent Seven Seas Cruises and Oceania Cruises. It provides services such as on-board lodging, dining, entertainment, and shore excursions. In Q1 2025, Norwegian Cruise Line (NYSE:NCLH) reported mixed financial results. Total revenue reached $2.1 billion, down about 3% compared to Q1 2024. The company attributed the decline to two factors: a 2% decline in capacity days related to increased dry-dock activities and a strategic reduction in passenger air participation rates. The cruise line posted a GAAP net loss of $40.3 million or ($0.09) per share, though its Adjusted EBITDA of $453 million exceeded guidance. The company is investing heavily in fleet enhancements and new experiences to drive consumer demand. On April 28, 2025, the Norwegian Cruise Line subsidiary welcomed Norwegian Aqua, the first vessel in its cutting-edge Prima Plus Class. Meanwhile, on April 30, 2025, the Oceania Cruises subsidiary announced a sweeping revamp of its onboard entertainment program across its eight small luxury ships fleet. It introduced a new celebratory evening called 'The Blue Horizons Party,' along with original production shows and immersive wellness experiences. On April 21, 2025, Loop Capital Markets analyst Laura Champine upgraded the stock from Hold to Buy while maintaining a $25 price target. Overall, NCLH ranks 3rd on our list of Billionaire Jim Simons' RenTech's small-cap stock picks with huge upside potential. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Norwegian Cruise Line Holdings Ltd. (NCLH): Among the Worst Performing Stocks in S&P 500 So Far in 2025
We recently published a list of the 11 Worst Performing Stocks in S&P 500 So Far in 2025. In this article, we will take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against other worst performing stocks this year. After a two-year surge of 53%, marking the best performance for the broad market index since the 1997-98 rally, stocks have been taken for a wild ride in 2025 due to uncertainties around recent tariffs, resulting in a year-to-date decline of nearly 6%. READ ALSO: 11 Most Promising Stocks According to Analysts and 15 Best Dividend Stocks to Buy for Long-Term Passive Income. Trends over the past century have shown that sustained high returns are uncommon. Following the strong back-to-back performance in the 1920s, markets fell sharply in 1929, which marked the beginning of the Great Depression. Then, after recovering in 1935 and 1936, it took a giant step back again a year later. A recent report by a leading investment banking company also pointed out how, historically, bull markets produce mediocre returns in the third year. Although they are usually not negative. The New York-based firm has projected positive but muted returns for 2025, while also noting that the continued adoption of artificial intelligence has the potential to lead to a productivity boom and a stronger market rally. The broad market index ended 0.74% higher on April 24, gaining 4.6% for the week, driven by a rebound in tech shares. The US Dollar also had its first weekly rise since March, as investors looked for signs that the ongoing trade war may be easing. Washington also appears to have softened its stance on trade relations with Beijing. In an interview with Time magazine on April 22, Trump stated his administration was engaged with China on striking a tariff deal. The US president also expects announcements on many other trade deals to be made over the next three to four weeks. While talking to CNBC, Jay Hatfield, founder and chief investment officer of InfraCap, expressed optimism that the worst of the uncertainty around tariffs is over: 'The confusion about whether there's really talks going on with China or not took some steam out of the market. Our view is that we've reached peak tariff tantrum and so it's likely to be more positive than negative.' Chip Rewey, CIO of Rewey Asset Management, said the following on the situation by Reuters: 'This week you've seen kind of relief that maybe some of the worst case of the Trump tariff actions won't come true. While we've recovered from some of the lows, we haven't pushed back to highs. And I think somewhere in that range is where we'll stay for a while.' With that said, let's now head over to discuss the worst performing stocks this year. A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries. For this article, we went through screeners to identify stocks listed on the S&P index. From there, we picked the top 11 stocks with the worst year-to-date negative returns in share price, as of the close of business on Friday, April 25, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). YTD Decline in Share Price: -33.53% Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a global cruise company, offering itineraries to over 700 destinations. It operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company has a combined fleet of 32 ships and over 66,500 berths. On February 27, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) announced results for the fiscal year 2024. The company generated a record revenue of $9.5 billion, growing 11% year-over-year. GAAP net income was posted at $910.3 million, surging 448% compared to 2023. Earnings per share increased 386% from the prior year to $1.89. Despite impressive financial results, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)'s share price has been on a steady decline since the earnings call, during which the company stated that it expects net cruise costs in Q1 FY25 to grow by nearly 4% due to increased dry dock capacity days. The company also noted that it could face headwinds in foreign exchange from a strong US dollar. Investor sentiment has also been dented by the Trump administration's recent statements about raising taxes on foreign-flagged cruise ships. Ariel Appreciation Fund stated the following regarding Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) in its Q1 2025 investor letter: 'Lastly, new holding, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) declined alongside the sector during the period, following investor concerns about a potential new tax on cruise lines. Although, we believe the risk of any potential exposure is currently priced in, we note cruise lines operate globally and determining taxable income on a jurisdiction basis can be extremely complex. Generally, operators benefit from exemptions under Section 883 of the IRS code and bilateral tax treaties that relieve them from paying corporate income tax on profits beyond the taxes already paid in their operating regions. The elimination of the carve-out would require a Congressional vote. Meanwhile, NCLH continues to deliver robust quarterly earnings, highlighted by strong consumer demand, healthy onboard spending, attractive pricing, solid cost containment and sustained progress on leverage reduction. Looking ahead, NCLH remains focused on right sizing its cost base and improving margins to further strengthen its foundation for sustainable and profitable growth.' With year-to-date declines of 33.53%, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is among the worst performing stocks this year. Overall, NCLH ranks 11th among the 11 Worst Performing Stocks in S&P 500 So Far in 2025. While we acknowledge the potential of NCLH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
01-05-2025
- Business
- Yahoo
Why Norwegian Cruise Line Holdings Ltd. (NCLH) Went Down On Wednesday
We recently published a list of . In this article, we are going to take a look at where Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stands against other worst-performing stocks on Wednesday. A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year, triggering fears of recession. Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent. Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year. In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A luxurious cruise ship overlooking a stunning horizon, highlighting the variety of its itineraries. Norwegian Cruise Line fell by 7.77 percent on Wednesday to end at $16.03 apiece as investor sentiment was dampened by its dismal earnings performance in the first quarter of the year. In a statement, the company said it swung to a net loss of $40.2 million from a net income of $17.3 million in the same period a year earlier on the back of lower capacity days and foreign exchange losses. Revenues dropped by 2.9 percent to $2.127 billion from $2.191 billion year-on-year, primarily due to a decline in capacity days related to its larger ships' increased berths in dry dock, weighed down further by a reduction in passenger air participation rates. Looking ahead, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) updated its full-year guidance for 2025 to reflect recent booking trends and changes in the macroeconomic environment. According to the company, it now expects net yield guidance to increase between 2 and 3 percent as compared with the previous guidance of 3 percent. Adjusted net income is expected to be approximately $1.045 billion. Overall, NCLH ranks 5th on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of NCLH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NCLH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
