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Norwegian Cruise (NCLH) Q4 Earnings Lag Estimates, Revenues Top
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported fourth-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line improved on a year-over-year basis. Following the results, the company’s shares were down 4% in the pre-market trading session on Feb 28.
Frank Del Rio, president and CEO of Norwegian Cruise, stated, “2022 was an eventful year, as we successfully completed our nearly yearlong Great Cruise Comeback, welcomed our newest ship Norwegian Prima to our world class fleet and achieved several key milestones on our post-pandemic financial recovery. We are now squarely focused on the future and are taking deliberate and strategic actions to best position the company for its next chapter, which includes an industry-leading growth profile representing approximately 50% Capacity growth over 2019.”
Earnings & Revenue Discussion
Norwegian Cruise reported an adjusted loss per share of $1.04, wider than the Zacks Consensus Estimate of a loss of 89 cents. In the prior-year quarter, the company reported a loss per share of $1.95.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Quarterly revenues of $1,519.1 million beat the consensus mark of $1,500 million. In the prior-year quarter, the company reported revenues of $487.4 million. The upside can primarily be attributed to the resumption of cruise operations.
In the quarter under review, passenger ticket revenues were $1,011.5 million compared with $304.9 million reported in the prior-year quarter. Onboard and other revenues increased to $507.6 million from $182.6 million reported in the prior-year quarter.
Expenses & Operating Results
Total cruise operating expenses increased 69.9% in the quarter under review from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from the resumption of cruise voyages and inflationary pressures. The company noted that the increase in 2022 reflects an improvement in payroll, fuel and direct variable costs of fully operating ships.
Gross cruise costs in the fourth quarter declined 0.7% year over year to $1,598 million. Adjusted net cruise costs (excluding fuel) amounted to $974.7 million compared with $982.2 million in the prior-year quarter. Fuel price per metric ton (net of hedges) increased to $755 from $737 in 2021.
Net interest expenses in the quarter were $177.1 million, compared with $950 million in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of Dec 31, 2022, were $947 million compared with $1,186.7 million at the end of Sep 30, 2022. Long-term debt, as of Dec 31, 2022, came in at $12.6 billion compared with $12.9 billion as of Sep 30, 2022.
2022 Highlights
Total revenues in 2022 came in at $4,843.8 million compared with $648 million reported in 2021.
Adjusted EBITDA in 2022 came in at ($673.9) million compared with $(1,723.8) million reported in 2021.
In 2022, adjusted earnings per share (EPS) came in at $(4.64) compared with $(8.07) reported in the previous year.
Booking Update
During the fourth quarter, the company reported solid booking volumes courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 are higher than 2019 levels. Also, it reported strength in advance ticket sales. As of Dec 31, 2022, the company’s advance ticket sales balance came in at $2.7 billion, reflecting a hike of 9% (from previous quarter) and 30% (from 2019 levels). The company stated pricing levels to be elevated.
2023 Guidance
For the first quarter of 2023, the company anticipates occupancy to be approximately 100% and Capacity Days to be approximately 5.45 million. During the quarter, adjusted interest expense is expected at approximately $175 million, while depreciation and amortization is anticipated at approximately $200 million. Adjusted EBITDA is expected at roughly $195 million. For the first quarter, adjusted EPS is projected to be nearly (45) cents.
For 2023, the company anticipates occupancy to be approximately 103.5% and Capacity Days to be approximately 22.8 million. During the year, adjusted interest expense is expected at approximately $730 million, while depreciation and amortization are anticipated at approximately $830 million. Adjusted EBITDA during the year is expected in the range of $1.8-1.95 million. For 2023, adjusted EPS is projected to be nearly 70 cents.
Zacks Rank & Key Picks
Norwegian Cruise currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 11.6%, on average. Shares of the company have increased 18.9% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 0.2% and 10.2%, respectively, from the year-ago levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 47.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.4% and 0.9%, respectively, from the year-ago period’s levels.
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Norwegian Cruise (NCLH) Q4 Earnings Lag Estimates, Revenues Top
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported fourth-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line improved on a year-over-year basis. Following the results, the company’s shares were down 4% in the pre-market trading session on Feb 28.
Frank Del Rio, president and CEO of Norwegian Cruise, stated, “2022 was an eventful year, as we successfully completed our nearly yearlong Great Cruise Comeback, welcomed our newest ship Norwegian Prima to our world class fleet and achieved several key milestones on our post-pandemic financial recovery. We are now squarely focused on the future and are taking deliberate and strategic actions to best position the company for its next chapter, which includes an industry-leading growth profile representing approximately 50% Capacity growth over 2019.”
Earnings & Revenue Discussion
Norwegian Cruise reported an adjusted loss per share of $1.04, wider than the Zacks Consensus Estimate of a loss of 89 cents. In the prior-year quarter, the company reported a loss per share of $1.95.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Quarterly revenues of $1,519.1 million beat the consensus mark of $1,500 million. In the prior-year quarter, the company reported revenues of $487.4 million. The upside can primarily be attributed to the resumption of cruise operations.
In the quarter under review, passenger ticket revenues were $1,011.5 million compared with $304.9 million reported in the prior-year quarter. Onboard and other revenues increased to $507.6 million from $182.6 million reported in the prior-year quarter.
Expenses & Operating Results
Total cruise operating expenses increased 69.9% in the quarter under review from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from the resumption of cruise voyages and inflationary pressures. The company noted that the increase in 2022 reflects an improvement in payroll, fuel and direct variable costs of fully operating ships.
Gross cruise costs in the fourth quarter declined 0.7% year over year to $1,598 million. Adjusted net cruise costs (excluding fuel) amounted to $974.7 million compared with $982.2 million in the prior-year quarter. Fuel price per metric ton (net of hedges) increased to $755 from $737 in 2021.
Net interest expenses in the quarter were $177.1 million, compared with $950 million in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of Dec 31, 2022, were $947 million compared with $1,186.7 million at the end of Sep 30, 2022. Long-term debt, as of Dec 31, 2022, came in at $12.6 billion compared with $12.9 billion as of Sep 30, 2022.
2022 Highlights
Total revenues in 2022 came in at $4,843.8 million compared with $648 million reported in 2021.
Adjusted EBITDA in 2022 came in at ($673.9) million compared with $(1,723.8) million reported in 2021.
In 2022, adjusted earnings per share (EPS) came in at $(4.64) compared with $(8.07) reported in the previous year.
Booking Update
During the fourth quarter, the company reported solid booking volumes courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 are higher than 2019 levels. Also, it reported strength in advance ticket sales. As of Dec 31, 2022, the company’s advance ticket sales balance came in at $2.7 billion, reflecting a hike of 9% (from previous quarter) and 30% (from 2019 levels). The company stated pricing levels to be elevated.
2023 Guidance
For the first quarter of 2023, the company anticipates occupancy to be approximately 100% and Capacity Days to be approximately 5.45 million. During the quarter, adjusted interest expense is expected at approximately $175 million, while depreciation and amortization is anticipated at approximately $200 million. Adjusted EBITDA is expected at roughly $195 million. For the first quarter, adjusted EPS is projected to be nearly (45) cents.
For 2023, the company anticipates occupancy to be approximately 103.5% and Capacity Days to be approximately 22.8 million. During the year, adjusted interest expense is expected at approximately $730 million, while depreciation and amortization are anticipated at approximately $830 million. Adjusted EBITDA during the year is expected in the range of $1.8-1.95 million. For 2023, adjusted EPS is projected to be nearly 70 cents.
Zacks Rank & Key Picks
Norwegian Cruise currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. (LVS - Free Report) and Bluegreen Vacations Holding Corporation and Crocs, Inc. (CROX - Free Report) .
Las Vegas Sands sports a Zacks Rank #1 (Strong Buy). LVS has a long-term earnings growth rate of 4.9%. The stock has increased 30.7% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Bluegreen Vacations sports a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 11.6%, on average. Shares of the company have increased 18.9% in the past year.
The Zacks Consensus Estimate for BVH’s 2023 sales and EPS indicates a rise of 0.2% and 10.2%, respectively, from the year-ago levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 47.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.4% and 0.9%, respectively, from the year-ago period’s levels.