Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) performed very well in the first quarter of 2018, reporting better-than-expected earnings per share and revenues. The company’s earnings (excluding 15 cents from non-recurring items) of 60 cents per share outpaced the Zacks Consensus Estimate of 54 cents. The bottom line also increased 50% on a year-over-year basis. Higher revenues aided the quarterly results.
Revenues came in at $1,293.4 million, which surpassed the Zacks Consensus Estimate of $1,286.5 million and improved 12.4% on a year-over-year basis. The upside was aided by a 13.1% increase in passenger ticket revenues to $889.87 million. The same from onboard and other sources was up 10.8% on a year-over-year basis to $403.54 million. Gross yield (total revenue per Capacity Day) increased 1.4% in the quarter on a year-over-year basis.
Net yield grew 1% on a constant-currency basis. The measure was up 2% on a reported basis. Fuel price per metric ton decreased marginally to $448 in the reported quarter. Total cruise operating expenses were up 6.7% to $768.11 million, courtesy of the 10.8% increase in Capacity Days.
Marketing, general and administrative expenses also increased year over year to $227.1 million. Gross Cruise Costs (sum of cruise operating expenses and marketing, general and administrative cost) per Capacity Day declined marginally in the first quarter due to a reduction in expenses on maintenance and repairs.
Notably, Norwegian Cruise Line’s fellow cruise line operator — Royal Caribbean Cruises Ltd. (RCL - Free Report) — had also reported had also reported better-than-expected first quarter earnings per share last month.
Outlook
Norwegian Cruise Line expects earnings per share (excluding special items) of approximately $1.02 in the second quarter of 2018. The Zacks Consensus Estimate is pegged at $1.03 per share, slightly above the company’s projection.
For 2018, the company anticipates earnings per share (excluding special items) in the band of $4.55-$4.70. The Zacks Consensus Estimate of $4.61 per share lies within the company’s guided range. Fuel price per metric ton, net of hedges, is projected at $470 for the second-quarter and 2018.
Zacks Rank & Stocks to Consider
Norwegian Cruise Line has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader Consumer Discretionary sector are Discovery, Inc. and Michael Kors Holdings Limited carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Discovery and Michael Kors have gained 7.3% and 5.5%, respectively, on a year-to-date basis.
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) performed very well in the first quarter of 2018, reporting better-than-expected earnings per share and revenues. The company’s earnings (excluding 15 cents from non-recurring items) of 60 cents per share outpaced the Zacks Consensus Estimate of 54 cents. The bottom line also increased 50% on a year-over-year basis. Higher revenues aided the quarterly results.
Revenues came in at $1,293.4 million, which surpassed the Zacks Consensus Estimate of $1,286.5 million and improved 12.4% on a year-over-year basis. The upside was aided by a 13.1% increase in passenger ticket revenues to $889.87 million. The same from onboard and other sources was up 10.8% on a year-over-year basis to $403.54 million. Gross yield (total revenue per Capacity Day) increased 1.4% in the quarter on a year-over-year basis.
Net yield grew 1% on a constant-currency basis. The measure was up 2% on a reported basis. Fuel price per metric ton decreased marginally to $448 in the reported quarter. Total cruise operating expenses were up 6.7% to $768.11 million, courtesy of the 10.8% increase in Capacity Days.
Marketing, general and administrative expenses also increased year over year to $227.1 million. Gross Cruise Costs (sum of cruise operating expenses and marketing, general and administrative cost) per Capacity Day declined marginally in the first quarter due to a reduction in expenses on maintenance and repairs.
Notably, Norwegian Cruise Line’s fellow cruise line operator — Royal Caribbean Cruises Ltd. (RCL - Free Report) — had also reported had also reported better-than-expected first quarter earnings per share last month.
Outlook
Norwegian Cruise Line expects earnings per share (excluding special items) of approximately $1.02 in the second quarter of 2018. The Zacks Consensus Estimate is pegged at $1.03 per share, slightly above the company’s projection.
For 2018, the company anticipates earnings per share (excluding special items) in the band of $4.55-$4.70. The Zacks Consensus Estimate of $4.61 per share lies within the company’s guided range. Fuel price per metric ton, net of hedges, is projected at $470 for the second-quarter and 2018.
Zacks Rank & Stocks to Consider
Norwegian Cruise Line has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader Consumer Discretionary sector are Discovery, Inc. and Michael Kors Holdings Limited carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Discovery and Michael Kors have gained 7.3% and 5.5%, respectively, on a year-to-date basis.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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