We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Norwegian Cruise Q3 Earnings Surpass Estimates, '24 View Up
Read MoreHide Full Article
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands, and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and Adjusted EBITDA.
Following the results, the company’s shares rose 4.4% in the pre-market trading session on Oct. 31.
NCLH’s Q3 Earnings & Revenues
Norwegian Cruise reported an adjusted EPS of 99 cents, topping the Zacks Consensus Estimate of 95 cents. In the prior-year quarter, the company reported an adjusted EPS of 76 cents.
Quarterly revenues of $2.8 billion beat the consensus mark of $2.76 billion. In the prior-year quarter, the company reported revenues of $2.54 billion.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Passenger ticket revenues were $1.94 billion compared with $1.73 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.9 billion.
Onboard and other revenues increased to $861.7 million from $802.4 million reported in the prior-year quarter. We expected onboard and other revenues to be $855.7 million.
Expenses & Operating Results
Total cruise operating expenses increased 3.8% year over year to $1.54 billion from the year-ago quarter’s levels. The company’s expenses in the quarter stemmed from a rise in Commissions, transportation, onboard and other expenses.
During the third quarter, gross cruise costs per Capacity Day were $314.39, compared with $310.65 reported in the prior year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $154.84, compared with $150.91 reported in the prior year period. During the quarter, fuel price per metric ton (net of hedges) came in at $699 compared with $727 reported in the prior-year quarter.
Net interest expenses were $175.2 million compared with $181.2 million reported in the year-ago quarter.
Balance Sheet
As of Sept. 30, 2024, the company had cash and cash equivalents of $332.5 million compared with $402.4 million at the end of 2023. Long-term debt was $11.8 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the third quarter, the company reported strong consumer demand, with most new bookings shifting toward 2025 sailings. It remains in the upper range of its optimal booked position on a 12-month forward basis. Occupancy during the quarter came in at 108.1%. It reported strong advance ticket sales of $3.3 billion, up 6% from 2023 levels.
Q4 and 2024 Guidance by NCLH
For the fourth-quarter 2024, NCLH anticipates occupancy to be approximately 101% and Capacity Days to be about 5.85 million. During the quarter, adjusted interest expenses are expected to be approximately $175 million, while depreciation and amortization are anticipated to be about $230 million. Adjusted EBITDA is expected to be about $445 million. Adjusted EPS is projected to be nearly 9 cents.
For 2024, the company anticipates occupancy to be approximately 105% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are expected to be approximately $720 million (down from the prior expectation of about $735 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is expected to be nearly $2.43 billion, up from the previously-expected $2.35 billion. For 2024, adjusted EPS is currently expected to be nearly $1.65, up from prior expectations of about $1.53.
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Norwegian Cruise Q3 Earnings Surpass Estimates, '24 View Up
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands, and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and Adjusted EBITDA.
Following the results, the company’s shares rose 4.4% in the pre-market trading session on Oct. 31.
NCLH’s Q3 Earnings & Revenues
Norwegian Cruise reported an adjusted EPS of 99 cents, topping the Zacks Consensus Estimate of 95 cents. In the prior-year quarter, the company reported an adjusted EPS of 76 cents.
Quarterly revenues of $2.8 billion beat the consensus mark of $2.76 billion. In the prior-year quarter, the company reported revenues of $2.54 billion.
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
Passenger ticket revenues were $1.94 billion compared with $1.73 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.9 billion.
Onboard and other revenues increased to $861.7 million from $802.4 million reported in the prior-year quarter. We expected onboard and other revenues to be $855.7 million.
Expenses & Operating Results
Total cruise operating expenses increased 3.8% year over year to $1.54 billion from the year-ago quarter’s levels. The company’s expenses in the quarter stemmed from a rise in Commissions, transportation, onboard and other expenses.
During the third quarter, gross cruise costs per Capacity Day were $314.39, compared with $310.65 reported in the prior year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $154.84, compared with $150.91 reported in the prior year period. During the quarter, fuel price per metric ton (net of hedges) came in at $699 compared with $727 reported in the prior-year quarter.
Net interest expenses were $175.2 million compared with $181.2 million reported in the year-ago quarter.
Balance Sheet
As of Sept. 30, 2024, the company had cash and cash equivalents of $332.5 million compared with $402.4 million at the end of 2023. Long-term debt was $11.8 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the third quarter, the company reported strong consumer demand, with most new bookings shifting toward 2025 sailings. It remains in the upper range of its optimal booked position on a 12-month forward basis. Occupancy during the quarter came in at 108.1%. It reported strong advance ticket sales of $3.3 billion, up 6% from 2023 levels.
Q4 and 2024 Guidance by NCLH
For the fourth-quarter 2024, NCLH anticipates occupancy to be approximately 101% and Capacity Days to be about 5.85 million. During the quarter, adjusted interest expenses are expected to be approximately $175 million, while depreciation and amortization are anticipated to be about $230 million. Adjusted EBITDA is expected to be about $445 million. Adjusted EPS is projected to be nearly 9 cents.
For 2024, the company anticipates occupancy to be approximately 105% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are expected to be approximately $720 million (down from the prior expectation of about $735 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is expected to be nearly $2.43 billion, up from the previously-expected $2.35 billion. For 2024, adjusted EPS is currently expected to be nearly $1.65, up from prior expectations of about $1.53.
NCLH’s Zacks Rank
Norwegian Cruise currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.
Mattel, Inc. (MAT - Free Report) reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.
The company’s quarterly results benefited notably from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.
The company's performance was backed by notable improvements in revenue per available room, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories — including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.