Cruise company Norwegian Cruise Line (NYSE:NCLH) will be reporting results tomorrow before market hours. Here’s what to look for.
Norwegian Cruise Line beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.81 billion, up 10.7% year on year. It was a strong quarter for the company, with a decent beat of analysts’ adjusted operating income estimates and EBITDA guidance for next quarter topping analysts’ expectations.
Is Norwegian Cruise Line a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Norwegian Cruise Line’s revenue to grow 5.8% year on year to $2.10 billion, slowing from the 30.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Norwegian Cruise Line has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Norwegian Cruise Line’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Choice Hotels delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 2.8%, and Playa Hotels & Resorts reported a revenue decline of 9.7%, topping estimates by 1.3%. Choice Hotels traded up 1.9% following the results.
Read our full analysis of Choice Hotels’s results here and Playa Hotels & Resorts’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the travel and vacation providers stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. Norwegian Cruise Line is down 12.9% during the same time and is heading into earnings with an average analyst price target of $30.76 (compared to the current share price of $24.78).
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