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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. On the other hand, the top and the bottom lines increased on a year-over-year basis.
The quarterly results showcase robust demand for the company’s products and offerings, resulting in record bookings. This uptrend aided the company to continue its all-time high booked position and an unprecedented level of advance ticket sales through 2024. Also, its ongoing margin enhancement initiative drove continued improvement in operating costs, thus benefiting the bottom line. Owing to the improving trend, the company raised its adjusted EBITDA and adjusted earnings per share (EPS) outlook for 2024.
NCLH is also optimistic about its newbuild program, as it believes that enhancing its capacity and elevating the product portfolio will further drive its growth prospects in the upcoming period.
Following the results, the company’s shares dwindled 3% in the pre-market trading session on May 1.
Earnings & Revenue Discussion
Norwegian Cruise reported an adjusted earnings per share of 16 cents, topping the Zacks Consensus Estimate of 12 cents by 33.3%. In the prior-year quarter, the company reported an adjusted loss per share of 30 cents.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Quarterly revenues of $2.19 billion missed the consensus mark of $2.24 billion by 2.2%. In the prior-year quarter, the company reported revenues of $1.82 billion.
Passenger ticket revenues were $1.46 billion compared with $1.21 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.52 billion.
Onboard and other revenues increased to $731.4 million from $613.1 million reported in the prior-year quarter. We expected onboard and other revenues to be $638.2 million.
Expenses & Operating Results
Total cruise operating expenses increased 8.6% to $1.39 billion from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from a rise in payroll, fuel, and commissions, transportation, onboard and other expenses.
During the first quarter, gross cruise costs per Capacity Day was $300, up from $298 reported a year ago. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $165 (or $164 in cc), reflecting flat year-over-year growth. Fuel price per metric ton (net of hedges) fell to $735 from $779 in 2023.
Net interest expenses were $218.2 million compared with $171.3 million reported in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Norwegian Cruise had cash and cash equivalents of $559.8 million compared with $402.4 million at the end of 2023. Long-term debt was $12.01 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the first quarter, the company reported strong consumer demand, achieving record-high bookings during a strong WAVE season. This helped NCLH attain a continued record booked position for the next twelve months. It reported an 11% rise in Onboard revenue per Capacity Day year over year. The company reported a record high Advance ticket sales of $3.8 billion, up 13% from 2023 levels.
The exceptional demand across all three reportable brands of the company almost fully offset the impact of the redeployed voyages related to the Middle East and the Red Sea.
Q2 & 2024 Guidance
For the second quarter of 2024, Norwegian Cruise anticipates occupancy to be approximately 105.7% and Capacity Days to be about 5.8 million. During the quarter, adjusted interest expenses are expected to be approximately $185 million, while depreciation and amortization are anticipated to be about $225 million. Adjusted EBITDA is expected to be about $555 million. Adjusted EPS is projected to be nearly 32 cents.
For 2024, the company anticipates occupancy to be approximately 105.1% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are now expected at approximately $740 million (up from the prior expectation of about $730 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is now expected to be nearly $2.25 billion, up from the previously expected $2.2 billion approximately. For 2024, adjusted EPS is currently expected to be nearly $1.32, up from prior expectations of about $1.23.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results for first-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions. Also, lower costs and expenses, mainly lower restructuring costs, and amortization expenses of intangible assets aided the bottom line of the company.
Mohawk Industries, Inc. (MHK - Free Report) reported impressive earnings in first-quarter 2024 (ended Mar 30). Its earnings surpassed the Zacks Consensus Estimate and improved from the prior year on the back of lower input costs, less restructuring expenses and productivity gains.
Net sales declined on a year-over-year basis but marginally beat the consensus mark. Despite the positive effect of actions taken to enhance its performance, economic headwinds impacted industry sales, margins and mix. Amid persistent market conditions, significant pricing and mix pressure due to industry competition for volume hurt the performance. Mohawk also noted that residential remodeling remained soft due to low housing sales and the impact of inflation on discretionary spending.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand. It is highly optimistic about the demand and pricing landscape for 2024. As of Mar 31, 2024, RCL had $6 billion in customer deposits compared with $5.3 billion as of Dec 31, 2023.
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Norwegian Cruise (NCLH) Q1 Earnings Beat, Bookings Rise Y/Y
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported mixed first-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. On the other hand, the top and the bottom lines increased on a year-over-year basis.
The quarterly results showcase robust demand for the company’s products and offerings, resulting in record bookings. This uptrend aided the company to continue its all-time high booked position and an unprecedented level of advance ticket sales through 2024. Also, its ongoing margin enhancement initiative drove continued improvement in operating costs, thus benefiting the bottom line. Owing to the improving trend, the company raised its adjusted EBITDA and adjusted earnings per share (EPS) outlook for 2024.
NCLH is also optimistic about its newbuild program, as it believes that enhancing its capacity and elevating the product portfolio will further drive its growth prospects in the upcoming period.
Following the results, the company’s shares dwindled 3% in the pre-market trading session on May 1.
Earnings & Revenue Discussion
Norwegian Cruise reported an adjusted earnings per share of 16 cents, topping the Zacks Consensus Estimate of 12 cents by 33.3%. In the prior-year quarter, the company reported an adjusted loss per share of 30 cents.
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 $2.19 billion missed the consensus mark of $2.24 billion by 2.2%. In the prior-year quarter, the company reported revenues of $1.82 billion.
Passenger ticket revenues were $1.46 billion compared with $1.21 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.52 billion.
Onboard and other revenues increased to $731.4 million from $613.1 million reported in the prior-year quarter. We expected onboard and other revenues to be $638.2 million.
Expenses & Operating Results
Total cruise operating expenses increased 8.6% to $1.39 billion from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from a rise in payroll, fuel, and commissions, transportation, onboard and other expenses.
During the first quarter, gross cruise costs per Capacity Day was $300, up from $298 reported a year ago. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $165 (or $164 in cc), reflecting flat year-over-year growth. Fuel price per metric ton (net of hedges) fell to $735 from $779 in 2023.
Net interest expenses were $218.2 million compared with $171.3 million reported in the year-ago quarter.
Balance Sheet
As of Mar 31, 2024, Norwegian Cruise had cash and cash equivalents of $559.8 million compared with $402.4 million at the end of 2023. Long-term debt was $12.01 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the first quarter, the company reported strong consumer demand, achieving record-high bookings during a strong WAVE season. This helped NCLH attain a continued record booked position for the next twelve months. It reported an 11% rise in Onboard revenue per Capacity Day year over year. The company reported a record high Advance ticket sales of $3.8 billion, up 13% from 2023 levels.
The exceptional demand across all three reportable brands of the company almost fully offset the impact of the redeployed voyages related to the Middle East and the Red Sea.
Q2 & 2024 Guidance
For the second quarter of 2024, Norwegian Cruise anticipates occupancy to be approximately 105.7% and Capacity Days to be about 5.8 million. During the quarter, adjusted interest expenses are expected to be approximately $185 million, while depreciation and amortization are anticipated to be about $225 million. Adjusted EBITDA is expected to be about $555 million. Adjusted EPS is projected to be nearly 32 cents.
For 2024, the company anticipates occupancy to be approximately 105.1% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are now expected at approximately $740 million (up from the prior expectation of about $730 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is now expected to be nearly $2.25 billion, up from the previously expected $2.2 billion approximately. For 2024, adjusted EPS is currently expected to be nearly $1.32, up from prior expectations of about $1.23.
Zacks Rank & Recent Consumer Discretionary Releases
Norwegian Cruise currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results for first-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions. Also, lower costs and expenses, mainly lower restructuring costs, and amortization expenses of intangible assets aided the bottom line of the company.
Mohawk Industries, Inc. (MHK - Free Report) reported impressive earnings in first-quarter 2024 (ended Mar 30). Its earnings surpassed the Zacks Consensus Estimate and improved from the prior year on the back of lower input costs, less restructuring expenses and productivity gains.
Net sales declined on a year-over-year basis but marginally beat the consensus mark. Despite the positive effect of actions taken to enhance its performance, economic headwinds impacted industry sales, margins and mix. Amid persistent market conditions, significant pricing and mix pressure due to industry competition for volume hurt the performance. Mohawk also noted that residential remodeling remained soft due to low housing sales and the impact of inflation on discretionary spending.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand. It is highly optimistic about the demand and pricing landscape for 2024. As of Mar 31, 2024, RCL had $6 billion in customer deposits compared with $5.3 billion as of Dec 31, 2023.