Yahoo Finance Norwegian Cruise Line Holdings' (NYSE:NCLH) growing losses don't faze investors as the stock climbs 8.7% this past week
It hasn't been the best quarter for Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shareholders, since the share price has fallen 19% in that time. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 54%.
Since it's been a strong week for Norwegian Cruise Line Holdings shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for Norwegian Cruise Line Holdings
Norwegian Cruise Line Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Norwegian Cruise Line Holdings saw its revenue shrink by 99%. The stock is up 54% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Norwegian Cruise Line Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for Norwegian Cruise Line Holdings in this interactive graph of future profit estimates.
A Different Perspective
It's nice to see that Norwegian Cruise Line Holdings shareholders have received a total shareholder return of 54% over the last year. That certainly beats the loss of about 5% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we've spotted with Norwegian Cruise Line Holdings .
We will like Norwegian Cruise Line Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This 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.
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