Advertisement
Canada markets open in 5 hours 20 minutes

  • S&P/TSX

    21,885.38
    +11.66 (+0.05%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CAD/USD

    0.7331
    +0.0008 (+0.11%)
     

  • CRUDE OIL

    83.96
    +0.39 (+0.47%)
     

  • Bitcoin CAD

    87,837.55
    +517.59 (+0.59%)
     

  • CMC Crypto 200

    1,388.14
    -8.39 (-0.60%)
     

  • GOLD FUTURES

    2,357.50
    +15.00 (+0.64%)
     

  • RUSSELL 2000

    1,981.12
    -14.31 (-0.72%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • NASDAQ futures

    17,757.25
    +189.75 (+1.08%)
     

  • VOLATILITY

    15.48
    +0.11 (+0.72%)
     

  • FTSE

    8,122.12
    +43.26 (+0.54%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6826
    +0.0005 (+0.07%)
     

Norwegian Cruise (NCLH) Up on Q1 Earnings Beat, Upbeat View

Zacks Equity Research

Norwegian Cruise Line Holdings Ltd. NCLH has reported better-than-expected results for the first quarter of 2019. With this, the company’s earnings surpassed the Zacks Consensus Estimate for nine consecutive quarters. Revenues also exceeded the consensus mark in three of the trailing four quarters.

The company’s quarterly results were aided by strong demand and a record booking trend. Also, a robust wave season has been boosting its profits. Norwegian Cruise raised guidance for earnings per share, which further boosted investors’ confidence.

Following the company’s quarterly results, shares surged 2.9% in the pre-market trading. Also, so far this year, Norwegian Cruise has witnessed 35.2% growth in shares, outpacing the industry’s 16.8% rally.


Earnings & Revenue Discussion

Adjusted earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 71 cents by 16.9%. The bottom line also grew 38.3% from the year-ago quarter.

ADVERTISEMENT

Revenues were $1,403.6 million in the first quarter, slightly surpassing the consensus mark of $1,391 million, and grew 8.5% year over year. Revenues were driven by an improvement of 9.4% in passenger ticket revenues.

Total revenues were also favored by the addition of Norwegian Bliss along with robust growth in organic pricing across all core markets. Strong onboard spending also had positive bearings on the quarter’s revenues.

Onboard and other revenues increased 6.6% from the year-ago quarter. Gross yield (total revenue per Capacity Day) increased 2.8% in the quarter on a year-over-year basis.

On a constant-currency basis, net yield increased 4.1% in the first quarter of 2019. The measure was up 3.2% on a reported basis.

Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise

 

Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise | Norwegian Cruise Line Holdings Ltd. Quote

Expenses & Operating Results

Total cruise operating expenses increased 7.6% in the quarter under review from the year-ago quarter. This increase is attributable to growth Capacity Days.

Gross cruise costs per capacity day increased 2.4%. Adjusted Net cruise costs (excluding fuel) per Capacity Day increased 3.6% on a constant-currency basis and 3% on a reported basis. Fuel price per metric ton (net of hedges) increased 2.9% to $461 in the quarter under review.

Net interest expenses were $73.5 million in the first quarter of 2019, up from $59.7 million in the first quarter of 2018.

Balance Sheet

Cash and cash equivalents as of Mar 31, 2019, were $304.7 million, up from $163.9 million as of Dec 31, 2018. Long-term debt at the end of the first quarter totaled $5.9 billion, up from $5.8 billion at the end of 2018.

Second-Quarter 2019 Guidance

For the second quarter of 2019, Norwegian Cruise expects adjusted earnings to be $1.33 per share, above the consensus estimate of $1.26.

Net yield is expected to be 5.5% at constant currency. The company expects net cruise costs (excluding Fuel per Capacity Day) to be roughly 5.3% in constant currency.

2019 Outlook

For 2019, Norwegian Cruise expects adjusted EPS of $5.40 to $5.50, up from the earlier $5.20-$5.30. The Zacks Consensus Estimate for earnings in 2019 stands at $5.45, below the mid-point of the company’s guided range.

Net yield is expected to be 3.5% to 4.5% while adjusted Net cruise costs are anticipated to be roughly 3.5% (both in constant currencies).

Zacks Rank & Stocks to Consider

Norwegian Cruise currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Planet Fitness PLNT, SeaWorld Entertainment SEAS and Madison Square Garden MSG, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Planet Fitness and SeaWorld Entertainment’s earnings for 2019 are expected to grow 27.1% and 134.6%, respectively. Madison Square Garden’s earnings in 2020 are expected to increase 36.9%.

This Could Be the Fastest Way to Grow Wealth in 2019

Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.

These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.

Click here to see these breakthrough stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
The Madison Square Garden Company (MSG) : Free Stock Analysis Report
 
SeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis Report
 
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research