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The Zacks Consensus Estimate for NCLH’s second-quarter earnings per share (EPS) is pegged at 51 cents, suggesting 27.5% growth from 40 cents reported in the prior-year quarter. The consensus mark has remained unchanged in the past 30 days.
NCLH Earnings Estimate Trend
Image Source: Zacks Investment Research
The consensus mark for second-quarter revenues is pegged at $2.56 billion, indicating growth of 7.8% from the year-ago quarter’s reported figure.
The company has an impressive earnings surprise history. NCLH earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 34%.
NCLH Earnings Surprise History
Image Source: Zacks Investment Research
Q2 Earnings Whispers for NCLH Stock
Our proven model predicts a likely earnings beat for Norwegian Cruise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Norwegian Cruise’s second-quarter performance is expected to have benefited from firm pricing discipline, resilient onboard spend, and the full-quarter impact of the newly introduced Norwegian Aqua. The company’s strategic focus on maximizing yield over occupancy, bolstering onboard monetization, and enhancing fleet efficiency is likely to have supported its overall revenue trajectory in the to-be-reported quarter.
Strength in onboard revenues — spanning specialty dining, excursions and services — likely remained a fundamental driver of growth in the second quarter. Our model estimates second-quarter passenger ticket revenues to rise 1.5% year over year to $1.6 billion. We expect onboard and other revenues to rise 17.9% year over year to $908.7 million.
Robust performance in core “Fun and Sun” itineraries, including the Caribbean, Bahamas, Bermuda and Hawaii, coupled with focus on close-in bookings and pre-sold onboard packages, is likely to have boosted yield expansion in the to-be-reported quarter. The company anticipates second-quarter net yields to rise 2.5% (on a reported and constant-currency basis) from 2024 levels. Our model predicts second-quarter net yields at $303.8 million (on a reported basis) and $344.8 million (constant-currency basis).
The delivery and full operational deployment of Norwegian Aqua in March may have played a central role in shaping second-quarter outcomes. As the first ship in the Prima Plus class, Aqua features increased stateroom capacity and space-saving entertainment options like the Aqua Slidecoaster. Strong initial demand and elevated consumer engagement tied to the ship’s differentiated offerings are expected to have supported ticket pricing and ancillary revenues in the second quarter.
Digital innovation, particularly the successful rollout of NCL’s mobile app across the fleet, is also likely to have bolstered the company’s revenue base. With over 800,000 guests accessing the app, NCLH is leveraging early guest engagement to lift pre-cruise purchases and increase guest lifetime value.
Fleet deployment optimization and port enhancements, including the newly constructed pier and facility upgrades at Great Stirrup Cay (NCLH’s private island), may have contributed positively. These initiatives are designed to improve guest satisfaction and drive incremental onboard spend, especially as Caribbean deployment ramps into the back half of the year.
Margins
Certain cost pressures are likely to have weighed on NCLH’s margin expansion in the second quarter. The full-quarter impact of Norwegian Aqua’s launch, along with deferred costs carried over from the first quarter, is expected to have modestly elevated the company’s expense base in the second quarter. The company anticipates that Adjusted Net Cruise Costs excluding fuel per capacity day will rise approximately 1.4% on a reported basis and 1% on a constant-currency basis.Our model forecasts total operating cruise expenses to increase 4.4% year over year to $1.5 billion.
Nevertheless, emphasis on cost discipline under its “Charting the Course” transformation initiative is likely to have aided margins and profitability in the second quarter. The company expects second-quarter adjusted EBITDA to be approximately $670 million and adjusted EPS to be 51 cents.
NCLH Stock Price Performance & Valuation
Norwegian Cruise shares have surged 49% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s rise of 31.8%. The cruise stock has also outperformed the S&P 500’s gain of 15.1%. The company’s peers, Carnival Corporation & plc (CCL - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , have gained 62.1%, 63.8% and 34.3%, respectively, in the same period.
NCLH Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Norwegian Cruise stock is currently trading at a discount. NCLH is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.64X, above the industry average of 20.26X. Other industry players, such as Carnival, Royal Caribbean and OneSpaWorld, have P/E ratios of 13.62X, 20.71X and 21.19X, respectively.
Image Source: Zacks Investment Research
Investment Considerations for NCLH Stock
Norwegian Cruise is focused on strengthening its position in the global leisure travel market through fleet modernization, immersive guest experiences, and disciplined financial execution. The company is advancing its ROI- and ROX-centric strategy with the launch of Norwegian Aqua and enhancements to Great Stirrup Cay — both aimed at increasing yield and driving premium onboard engagement. A growing share of pre-cruise purchases through the revamped NCL app, along with strategic redeployment toward high-demand, close-to-home itineraries, supports stronger revenue per guest and stickier customer retention. Concurrently, fleet optimization efforts — including chartering older ships and investing in high-impact drydocks — are expected to reduce operational complexity, support cost control, and enhance long-term margin performance.
However, NCLH faces near-term challenges stemming from booking softness in select European itineraries and macroeconomic headwinds impacting long-haul travel demand. The company’s strategy of prioritizing pricing over occupancy may constrain near-term load factor recovery, particularly as it transitions into new geographic deployments with shorter booking curves. Currency fluctuations, timing of repositioning expenses, and elevated marketing investments may also weigh on profitability in the short run. While management’s ongoing cost efficiency program and focus on yield integrity provide a cushion, continued progress in demand recovery, forward bookings, and cost discipline will be key to achieving its 2025-2026 financial targets.
How to Play Norwegian Cruise Stock Now?
Despite a 49% rally over the past three months, Norwegian Cruise Line Holdings still warrants a hold rating ahead of its second-quarter 2025 earnings release. While management is projecting healthy yield growth driven by strong onboard spend, firm pricing, and full-quarter contributions from Norwegian Aqua, near-term margin expansion may be tempered by launch-related costs, deferred Q1 expenses, and FX headwinds. The company’s strategic emphasis on pricing over occupancy, coupled with shorter booking curves in key markets, could limit visibility and load factor recovery in the near term.
That said, Norwegian Cruise’s growing digital ecosystem, enhanced deployment to close-to-home itineraries, and structural fleet upgrades offer longer-term upside. The company’s “Charting the Course” efficiency program and commitment to cost control reinforce earnings quality, while continued upgrades at destinations like Great Stirrup Cay position it well for elevated guest engagement. Although the stock trades at a discount relative to peers, its recent run reflects optimism already priced in.
Given the current setup, maintaining a Hold position on NCLH stock appears warranted. Investors are advised to refrain from initiating new positions until further visibility emerges following the company’s second-quarter earnings release and accompanying outlook commentary.
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Norwegian Cruise to Report Q2 Earnings: Buy, Sell or Hold the Stock?
Key Takeaways
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to release second-quarter 2025 results on July 31.
The Zacks Consensus Estimate for NCLH’s second-quarter earnings per share (EPS) is pegged at 51 cents, suggesting 27.5% growth from 40 cents reported in the prior-year quarter. The consensus mark has remained unchanged in the past 30 days.
NCLH Earnings Estimate Trend
Image Source: Zacks Investment Research
The consensus mark for second-quarter revenues is pegged at $2.56 billion, indicating growth of 7.8% from the year-ago quarter’s reported figure.
The company has an impressive earnings surprise history. NCLH earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 34%.
NCLH Earnings Surprise History
Image Source: Zacks Investment Research
Q2 Earnings Whispers for NCLH Stock
Our proven model predicts a likely earnings beat for Norwegian Cruise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Norwegian Cruise has an Earnings ESP of +0.33% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping NCLH’s Upcoming Results
Revenues
Norwegian Cruise’s second-quarter performance is expected to have benefited from firm pricing discipline, resilient onboard spend, and the full-quarter impact of the newly introduced Norwegian Aqua. The company’s strategic focus on maximizing yield over occupancy, bolstering onboard monetization, and enhancing fleet efficiency is likely to have supported its overall revenue trajectory in the to-be-reported quarter.
Strength in onboard revenues — spanning specialty dining, excursions and services — likely remained a fundamental driver of growth in the second quarter. Our model estimates second-quarter passenger ticket revenues to rise 1.5% year over year to $1.6 billion. We expect onboard and other revenues to rise 17.9% year over year to $908.7 million.
Robust performance in core “Fun and Sun” itineraries, including the Caribbean, Bahamas, Bermuda and Hawaii, coupled with focus on close-in bookings and pre-sold onboard packages, is likely to have boosted yield expansion in the to-be-reported quarter. The company anticipates second-quarter net yields to rise 2.5% (on a reported and constant-currency basis) from 2024 levels. Our model predicts second-quarter net yields at $303.8 million (on a reported basis) and $344.8 million (constant-currency basis).
The delivery and full operational deployment of Norwegian Aqua in March may have played a central role in shaping second-quarter outcomes. As the first ship in the Prima Plus class, Aqua features increased stateroom capacity and space-saving entertainment options like the Aqua Slidecoaster. Strong initial demand and elevated consumer engagement tied to the ship’s differentiated offerings are expected to have supported ticket pricing and ancillary revenues in the second quarter.
Digital innovation, particularly the successful rollout of NCL’s mobile app across the fleet, is also likely to have bolstered the company’s revenue base. With over 800,000 guests accessing the app, NCLH is leveraging early guest engagement to lift pre-cruise purchases and increase guest lifetime value.
Fleet deployment optimization and port enhancements, including the newly constructed pier and facility upgrades at Great Stirrup Cay (NCLH’s private island), may have contributed positively. These initiatives are designed to improve guest satisfaction and drive incremental onboard spend, especially as Caribbean deployment ramps into the back half of the year.
Margins
Certain cost pressures are likely to have weighed on NCLH’s margin expansion in the second quarter. The full-quarter impact of Norwegian Aqua’s launch, along with deferred costs carried over from the first quarter, is expected to have modestly elevated the company’s expense base in the second quarter. The company anticipates that Adjusted Net Cruise Costs excluding fuel per capacity day will rise approximately 1.4% on a reported basis and 1% on a constant-currency basis.Our model forecasts total operating cruise expenses to increase 4.4% year over year to $1.5 billion.
Nevertheless, emphasis on cost discipline under its “Charting the Course” transformation initiative is likely to have aided margins and profitability in the second quarter. The company expects second-quarter adjusted EBITDA to be approximately $670 million and adjusted EPS to be 51 cents.
NCLH Stock Price Performance & Valuation
Norwegian Cruise shares have surged 49% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s rise of 31.8%. The cruise stock has also outperformed the S&P 500’s gain of 15.1%. The company’s peers, Carnival Corporation & plc (CCL - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , have gained 62.1%, 63.8% and 34.3%, respectively, in the same period.
NCLH Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Norwegian Cruise stock is currently trading at a discount. NCLH is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.64X, above the industry average of 20.26X. Other industry players, such as Carnival, Royal Caribbean and OneSpaWorld, have P/E ratios of 13.62X, 20.71X and 21.19X, respectively.
Image Source: Zacks Investment Research
Investment Considerations for NCLH Stock
Norwegian Cruise is focused on strengthening its position in the global leisure travel market through fleet modernization, immersive guest experiences, and disciplined financial execution. The company is advancing its ROI- and ROX-centric strategy with the launch of Norwegian Aqua and enhancements to Great Stirrup Cay — both aimed at increasing yield and driving premium onboard engagement. A growing share of pre-cruise purchases through the revamped NCL app, along with strategic redeployment toward high-demand, close-to-home itineraries, supports stronger revenue per guest and stickier customer retention. Concurrently, fleet optimization efforts — including chartering older ships and investing in high-impact drydocks — are expected to reduce operational complexity, support cost control, and enhance long-term margin performance.
However, NCLH faces near-term challenges stemming from booking softness in select European itineraries and macroeconomic headwinds impacting long-haul travel demand. The company’s strategy of prioritizing pricing over occupancy may constrain near-term load factor recovery, particularly as it transitions into new geographic deployments with shorter booking curves. Currency fluctuations, timing of repositioning expenses, and elevated marketing investments may also weigh on profitability in the short run. While management’s ongoing cost efficiency program and focus on yield integrity provide a cushion, continued progress in demand recovery, forward bookings, and cost discipline will be key to achieving its 2025-2026 financial targets.
How to Play Norwegian Cruise Stock Now?
Despite a 49% rally over the past three months, Norwegian Cruise Line Holdings still warrants a hold rating ahead of its second-quarter 2025 earnings release. While management is projecting healthy yield growth driven by strong onboard spend, firm pricing, and full-quarter contributions from Norwegian Aqua, near-term margin expansion may be tempered by launch-related costs, deferred Q1 expenses, and FX headwinds. The company’s strategic emphasis on pricing over occupancy, coupled with shorter booking curves in key markets, could limit visibility and load factor recovery in the near term.
That said, Norwegian Cruise’s growing digital ecosystem, enhanced deployment to close-to-home itineraries, and structural fleet upgrades offer longer-term upside. The company’s “Charting the Course” efficiency program and commitment to cost control reinforce earnings quality, while continued upgrades at destinations like Great Stirrup Cay position it well for elevated guest engagement. Although the stock trades at a discount relative to peers, its recent run reflects optimism already priced in.
Given the current setup, maintaining a Hold position on NCLH stock appears warranted. Investors are advised to refrain from initiating new positions until further visibility emerges following the company’s second-quarter earnings release and accompanying outlook commentary.