In This Article:
Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report fourth-quarter 2024 results on Feb. 27, before the opening bell. In the last reported quarter, the company registered an earnings surprise of 4.2%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
NCLH’s Estimates Revisions
The Zacks Consensus Estimate for fourth-quarter adjusted earnings is pegged at 11 cents per share, indicating a year-over-year jump of 161.1%. In the past 30 days, earnings estimates for the current quarter have been stable. For revenues, the consensus mark is pegged at $2.09 billion, suggesting a 5.2% year-over-year increase.
What the Zacks Model Unveils
Our proven model doesn't conclusively predict an 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 odds of an earnings beat.
Earnings ESP: Norwegian Cruise has an Earnings ESP of -1.28%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company flaunts a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-eps-surprise | Norwegian Cruise Line Holdings Ltd. Quote
What’s Shaping NCLH’s Q4 Results?
Norwegian Cruise’s fourth-quarter performance is likely to have been aided by strong consumer demand and a solid booking environment. Also, the rise in onboard spending, boosted by shore excursions and improved communication offerings via Starlink high-speed Internet, bode well.
Continued strong onboard revenues, especially from shore excursions, specialty dining and onboard amenities, are expected to have significantly contributed to overall revenues. Alongside the aforementioned tailwinds, NCLH’s fleet expansion initiatives and focus on innovation and digital investments are likely to have fostered growth trends.
For the quarter under review, our model predicts passenger ticket revenues and onboard and other revenues to increase 1.9% to $1,359 million and 6.6% to $696.4 million, respectively, on a year-over-year basis. Our model predicts passengers carried in the fourth quarter of 2024 to have increased 13.4% year over year.
The bottom line is expected to have increased year over year on the back of Norwegian Cruise’s continuous focus on cost reductions and efficiencies, accompanied by margin enhancement initiatives. Leverage from top-line growth is expected to have acted as another tailwind. Our model predicts year-over-year adjusted EBITA growth of 27% to $456.7 million.
Despite strong performance expectations, NCLH faces several headwinds that could have negatively impacted its performance. Higher expenses related to commissions, transportation, and onboard services remain a concern. Inflation and global supply chain disruptions are expected to continue pressuring margins. Geopolitical risks also pose operational challenges.