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Norwegian Cruise Line Holdings Ltd. (NCLH), headquartered in Miami, Florida, provides cruise travel services. Valued at $8.43 billion by market cap, the company offers cruise itineraries and theme cruises and markets its services through various distribution channels, including retail and travel agents, international and incentive sales, and consumer direct. The leading cruise operator is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect NCLH to report a profit of $0.26 per share on a diluted basis, up 30% from $0.20 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion. NCLH reported record bookings during the first quarter, driving record booked position for the next 12 months.
For the full year, analysts expect NCLH to report EPS of $1.17, up 178.6% from $0.42 in fiscal 2023.
NCLH stock has underperformed the S&P 500’s ($SPX) 22.3% gains over the past 52 weeks, with shares down 7% during this period. Similarly, it underperformed the Consumer Disc ETF Vanguard’s (VCR) 11.5% gains over the same time frame.
On Jul. 2, NCLH shares slumped nearly 6% as Hurricane Beryl approached the Caribbean. The hurricane forced cruise liners to change their itineraries in the area. It altered nearly the entire itinerary for a week-long sailing on its Norwegian Breakaway ship that departed from Miami, Florida. NCLH canceled stops in Honduras, Harvest Caye in Belize, and Costa Maya and Cozumel in Mexico.
On May 1, NCLH reported its Q1 results. Its adjusted EPS of $0.16 topped Wall Street expectations of $0.12. The company’s revenue of $2.19 billion failed to meet Wall Street forecasts of $2.24 billion. For Q2, NCLH expects its adjusted EPS to be $0.32. The company expects full-year adjusted EPS to be $1.32, up from the prior guidance of $1.23, and it also increased its adjusted net income guidance by $45 million to $680 million.
Moreover, it increased its adjusted EBITDA guidance by $50 million to $2.25 billion. NCLH shares closed down more than 15% on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on NCLH stock is bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, seven advise a “Strong Buy” rating, nine give a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for NCLH is $21.34, indicating a potential upside of 8.5% from the current levels.
On the date of publication, Dipanjan Banchur 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.
