Latest news with #VikingHoldings
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
Viking's Revenue Explodes 750%--So Why Did the Stock Just Sink?
Viking Holdings (NYSE:VIK) growth looks explosiveon paper. Revenue soared from $625 million in 2021 to over $5.3 billion in 2024, compounding at a jaw-dropping 104.3% CAGR. That's not just outpacing the cruise industryit's lapping it. The company's first quarter as a public entity didn't disappoint either: a narrower-than-expected loss, top-line beat, and bullish signals on net yield and capacity. Viking Holdings is riding a travel renaissance, with its founder-CEO calling it robust demand for enriching travel experiences. But Wall Street wasn't cheering. Warning! GuruFocus has detected 1 Warning Sign with VIK. Despite the strength, Viking stock dropped over 5% after the report. Why? Investors zoomed in on bookingsand didn't love what they saw. Advance bookings for 2026 are tracking only 4% higher than 2025, a steep drop from the 12% jump a year earlier. Pricing tends to start high and slide, and analysts warn that this +4% growth may already be near peak. Add in the lack of concrete financial guidance and some vague management commentary, and you've got a recipe for investor hesitationeven in a red-hot sector. From the chart, Viking's revenue is skyrocketing, but profitability isn't yet following suit. Net income remains in the red, though losses are narrowing, and EBITDAafter dipping in 2023is starting to climb again in 2024. The trend? Strong top-line growth, improving margins, but still a ways to go before bottom-line strength kicks in. If Viking can translate its surging sales into sustained profits, this could be one of the most interesting long-term plays in travel. This article first appeared on GuruFocus.
Yahoo
21-05-2025
- Business
- Yahoo
Viking's Revenue Explodes 750%--So Why Did the Stock Just Sink?
Viking Holdings (NYSE:VIK) growth looks explosiveon paper. Revenue soared from $625 million in 2021 to over $5.3 billion in 2024, compounding at a jaw-dropping 104.3% CAGR. That's not just outpacing the cruise industryit's lapping it. The company's first quarter as a public entity didn't disappoint either: a narrower-than-expected loss, top-line beat, and bullish signals on net yield and capacity. Viking Holdings is riding a travel renaissance, with its founder-CEO calling it robust demand for enriching travel experiences. But Wall Street wasn't cheering. Warning! GuruFocus has detected 1 Warning Sign with VIK. Despite the strength, Viking stock dropped over 5% after the report. Why? Investors zoomed in on bookingsand didn't love what they saw. Advance bookings for 2026 are tracking only 4% higher than 2025, a steep drop from the 12% jump a year earlier. Pricing tends to start high and slide, and analysts warn that this +4% growth may already be near peak. Add in the lack of concrete financial guidance and some vague management commentary, and you've got a recipe for investor hesitationeven in a red-hot sector. From the chart, Viking's revenue is skyrocketing, but profitability isn't yet following suit. Net income remains in the red, though losses are narrowing, and EBITDAafter dipping in 2023is starting to climb again in 2024. The trend? Strong top-line growth, improving margins, but still a ways to go before bottom-line strength kicks in. If Viking can translate its surging sales into sustained profits, this could be one of the most interesting long-term plays in travel. This article first appeared on GuruFocus. 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
21-05-2025
- Business
- Yahoo
Viking Holdings First Quarter 2025 Earnings: Beats Expectations
Revenue: US$897.1m (up 25% from 1Q 2024). Net loss: US$105.5m (loss narrowed by 71% from 1Q 2024). US$0.24 loss per share (improved from US$1.66 loss in 1Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 6.6%. Earnings per share (EPS) also surpassed analyst estimates by 19%. Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 9.7% growth forecast for the Hospitality industry in the US. Performance of the American Hospitality industry. The company's shares are down 4.5% from a week ago. Before you take the next step you should know about the 2 warning signs for Viking Holdings (1 is concerning!) that we have uncovered. 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.
Entrepreneur
21-05-2025
- Business
- Entrepreneur
Viking Holdings Posts Strong Q1, Eyes Growth Ahead
After one year of being publicly traded, VIK stock shows resilience and a positive trend, supported by a loyal customer base and an innovative business model This story originally appeared on MarketBeat Viking Holdings Inc. (NASDAQ: VIK) is a relative newcomer to investors. The cruise line, known for its longships and child-free cruises, completed its initial public offering (IPO) in April 2024. The company just reported its first-quarter earnings for 2025. The results show a company that's maturing, and the stock chart may confirm future growth even at a premium valuation. [content-module:CompanyOverview|NYSE:VIK] The first quarter is historically the weakest for cruise lines, and seasonality is particularly notable with Viking. The company's river cruise season primarily runs from April to October. However, that doesn't take away from the fact that Viking delivered a double beat with revenue of $897.06 million coming in over 6% higher than analysts' estimates of $841.18 million. The topline number was also an impressive 24.9% higher on a year-over-year (YOY) basis. That was supported by a 14.9% increase in capacity passenger cruise days and 94.5% occupancy for the quarter. Also, in a quarter when cruise lines typically post losses, Viking's loss of $0.24 per share beat estimates of a $0.27 loss and improved from the $0.74 loss reported in May 2024. Demand Remains Strong [content-module:Forecast|NYSE:VIK] Like many transportation stocks, Viking stock dropped sharply on the announcement of the Liberation Day tariffs. However, that appears to be an example of traders selling first and asking questions later. The cruise line industry appears to be insulated from tariff pressures. Viking's target audience consists of a generation with the disposable income to travel. Viking's business model includes no casinos on board the ships and no passengers under the age of 18. These are not party ships. The stock's drop after the report may express concern about the number of passengers who sailed in the prior quarter, which came in approximately 88,000 below estimates. Still, there's no evidence that demand is waning. The company announced that it has booked 92% of its capacity for this season. If there was one hiccup in the earnings report, it's that 2026 bookings are currently at 37%. That's slightly below the 39% it had booked at this same time last year. New Ships Mean New Adventures Another highlight for the company was the announcement of its newest river ship, the Viking Thoth, which will be delivered in October. This is the latest addition to its Nile River fleet, which the company plans to expand to 12 ships by 2027. One ship, the Viking Libra, will be powered by hydrogen, meaning it will be capable of operating with zero emissions. The company expects to have the ship delivered in 2026. Plus, the company announced plans to take delivery of one ocean ship and nine more river vessels in 2025. More capacity along with favorable demand trends is a bullish sign for a company that posted an adjusted gross margin that was 23.8% higher YOY. A Trend Reversal Looks Favorable Although VIK stock has only been publicly traded for a year, it has shown several instances of making higher highs with higher lows. On the occasions when the stock has broken that pattern, it hasn't been because of the company's results but broader macroeconomic concerns that spooked investors. That's why the price action after the company's quarterly earnings report looks favorable. The stock dropped nearly 7% immediately after the report was released. However, in midday trading, Viking stock cut that loss nearly in half, and it may confirm support at a level around December 2024, along with its 10-day simple moving average (SMA). That said, the stock was overbought as it was heading into the earnings report. Investors may want to see a confirmed break above the May 19 close or if analysts raise their targets for the stock before adding to or taking a new position. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
