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Bull of the Day: Viking Holdings Ltd. (VIK)

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Viking Holdings Ltd (VIK - Free Report) is cashing in on the demand for travel experiences. This Zacks Rank #1 (Strong Buy) is expected to grow its revenue by 17.7% in 2025.

Viking is a travel company that operates cruises on rivers, oceans, and lakes around the world. Founded in 1997, its journeys are designed for curious travelers with interests in science, history, culture, and cuisine. If offers experiences for “The Thinking Person” and is best known for its advertisements on America’s PBS stations.

Viking Announces 10 New Ocean Itineraries for 2026 and 2027

On Dec 18, 2024, Viking announced 10 new ocean itineraries for 2026 and 2027 that are available for booking.

The cruises range from 8 to 22 days on its small ocean ships which do not allow children and do not have casinos.

These itineraries are adding 12 additional recurring ports that are new for the Viking Ocean voyages.

Viking Beats on Earnings for the Third Quarter in a Row

On Nov 19, 2024, Viking reported its third quarter 2024 results and beat on the Zacks Consensus by $0.06. It reported $0.89 versus the Zacks Consensus of $0.83.

It was the third consecutive earnings beat in a row. Viking only went public on May 1, 2024 so it has a tiny earnings surprise track record.

Revenue rose 11.4% to $171.9 million compared to the third quarter of 2023.

Adjusted gross margin rose 12% year-over-year, resulting in a Net Yield of $576. Net Yield was up 11% year-over-year.

As of Nov 3, 2024, for its Core Products, Viking had already sold 95% of its 2024 season Capacity Passenger Cruise Days. It’s marketing team was therefore already focusing on 2025.

However, it had already sold 70% of the 2025 season as well. Volume and rates for 2025 exceeded those for the 2024 season at the same point in time.

Viking had $4,633 million of Advance Bookings for the 2024 season, 14% higher than the 2023 season at the same point in time. It also had $4,329 million of Advance Bookings for the 2025 season, 26% higher than the 2024 season at the same point in time.

Capacity has increased. For its Core Products, operating capacity was 5% higher for the 2024 season compared to the 2023 season and is 12% higher for the 2025 season compared to the 2024 season.

The Fleet is Expanding

On Dec 3, 2024, Viking announced it had taken delivery of its newest ocean ship, the Viking Vela. It has 499 staterooms for 998 passengers. In her first cruise season, the Viking Vela will sail itineraries in the Mediterranean and Northern Europe.

Viking has also been expanding its river boat fleet as well. It will add 2 new ships to its Nile fleet in 2025 and another 2 in 2026 which will bring its Nile fleet to 10 ships.

Analysts Bullish on Viking in 2025

Given how strong cruise demand has been this year and for advance bookings for 2025, it’s not a surprise that the analysts are bullish as well.

5 estimates have been raised for 2025 in the last 60 days, with 1 higher in the last 30 days. That has pushed the Zacks Consensus Estimate up to $2.27 from $2.08 in the prior 2 months.

That’s earnings growth of 51.8% as Viking is expected to make $1.50 in 2024.

Zacks Investment Research
Image Source: Zacks Investment Research

Shares Soar Since the IPO

Viking picked the perfect time to go IPO as demand is strong in travel. Shares of Viking have soared 69.8% since its IPO, far out performing the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

However, it’s seen some weakness in December as the rest of the market has pulled back. Shares are down 5.1% over the last month.

It’s not cheap, on a price-to-earnings (P/E) basis. Viking trades with a forward P/E of 29.4.

But for those looking for a way to play the hot travel demand in 2025, Viking should be on your short list.


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