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Miami, Florida-based Norwegian Cruise Line Holdings Ltd. (NCLH) is a leading cruise line operator that owns and operates three brands: Oceania Cruises, Regent Seven Seas Cruises, and Norwegian Cruise Line. Valued at a market cap of nearly $10 billion, the company offers itineraries ranging from three days to 180 days, calling on various ports. It is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.
Ahead of this event, analysts project the cruise company to report a profit of $0.88 per share, up 23.9% from $0.71 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one another occasion. Its adjusted earnings of $0.40 per share in the last quarter topped the consensus estimates by 16.7% and increased 33.3% from a year ago. The outperformance was primarily driven by the company’s robust market demand and disciplined cost management.
For fiscal 2024, analysts expect NCLH to report an EPS of $1.38, significantly up by 228.6% from $0.42 in fiscal 2023. Moreover, EPS is expected to increase 19.6% year-over-year to $1.65 in fiscal 2025.
Shares of NCLH have gained 15.9% on a YTD basis, lagging behind the S&P 500 Index's ($SPX) 21.8% rise but outpacing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) almost 12% return over the same period
On Oct. 9, shares of NCLH jumped 10.9% after Citi analyst James Hardiman upgraded the stock from “Neutral” to “Buy” and increased the price target from $20 to $30. The upgrade was made, noting the company’s increased focus on costs and efficient cost management strategies.
However, the stock declined for four consecutive trading sessions after its Q2 earnings release on Jul. 31 despite reporting a strong performance. Along with surpassing Wall Street’s adjusted EPS estimates, its revenue of $2.37 billion, which climbed 8% from a year ago, came in line with the estimates. The company also raised its full-year EPS guidance to $1.53.
Analysts' consensus view on Norwegian Cruise Line’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, eight recommend a "Strong Buy," eight suggest a "Hold," and one indicates a “Strong Sell.” This configuration is more bullish than three months ago, with seven analysts suggesting a "Strong Buy."
The average analyst price target for NCLH is $24.47, indicating a 5.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
