Yahoo Finance Norwegian Cruise (NCLH) Q1 Earnings Top Estimates, Rise Y/Y
Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily driven by strong consumer demand, solid booking environment and robust onboard revenue generation. Following the results, the company’s shares were up 1.5% in the pre-market trading session on May 1.
Earnings & Revenue Discussion
Norwegian Cruise reported an adjusted loss per share of 37 cents, narrower than the Zacks Consensus Estimate of a loss of 51 cents. In the prior-year quarter, the company reported adjusted loss per share of $1.82.
Quarterly revenues of $1,821.9 million beat the consensus mark of $1,761 million. In the prior-year quarter, the company reported revenues of $521.9 million. The upside can be attributed to the resumption of cruise operations.
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
In the quarter under review, passenger ticket revenues were $1,208.8 million compared with $342.5 million reported in the prior-year quarter. Onboard and other revenues increased to $613.1 million from $179.5 million reported in the prior-year quarter.
Expenses & Operating Results
Total cruise operating expenses increased 74.1% in the quarter under review from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from the resumption of cruise voyages and inflationary pressures. The company reported a rise in payroll, fuel and direct variable costs of fully-operating ships.
During the first quarter, gross cruise costs dropped 0.7% (from 2019 levels) to $1,616.4 million. Adjusted net cruise costs (excluding fuel) amounted to $863.4 million compared with $871.7 million in the first quarter of 2019. Fuel price per metric ton (net of hedges) increased to $779 from $724 in 2022.
Net interest expenses in the quarter were $171.3 million compared with $327.7 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of Mar 31, 2023, were $701 million compared with $947 million at the end of Dec 31, 2022. Long-term debt, as of Mar 31, 2023, came in at $11.9 billion compared with $12.6 billion as of Dec 31, 2022.
Booking Update
During the first quarter, the company reported solid booking volumes courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 are higher than 2019 levels. Also, it reported strength in advance ticket sales. As of Mar 31, 2023, the company’s advance ticket sales balance came in at $3.4 billion, up 26% (from the previous quarter’s levels) and 60% (from 2019 levels). The company stated pricing levels to be elevated.
2023 Guidance
For the second quarter of 2023, the company anticipates occupancy to be approximately 105% and Capacity Days to be approximately 5.5 million. During the quarter, adjusted interest expense is expected at approximately $175 million, while depreciation and amortization is anticipated at approximately $200 million. Adjusted EBITDA is expected at nearly $485 million. For the second quarter, adjusted EPS is projected to be nearly 25 cents.
For 2023, the company anticipates occupancy to be approximately 103.5% and Capacity Days to be approximately 22.8 million. During the year, adjusted interest expenses are expected at approximately $715 million, while depreciation and amortization are anticipated at nearly $815 million. Adjusted EBITDA during the year is expected in the range of $1.8-1.95 billion. For 2023, adjusted EPS is projected to be nearly 75 cents compared with the prior projection of 70 cents.
Zacks Rank & Key Picks
Norwegian Cruise currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Hilton Grand Vacations Inc. HGV, Crocs, Inc. CROX and PlayAGS, Inc. AGS.
Hilton Grand Vacations currently sports a Zacks Rank #1 (Strong Buy). HGV has a trailing four-quarter earnings surprise of 27.9%, on average. Shares of HGV have declined 8.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HGV’s 2023 sales and earnings per share (EPS) indicates a rise of 7.3% and 3.4%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 19.6%, on average. Shares of Crocs have increased 74.3% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12% and 5.6%, respectively, from the year-ago period’s levels.
PlayAGS carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has declined 20.3% in the past year.
The Zacks Consensus Estimate for AGS 2024 sales and EPS indicates a rise of 3% and 1,873.3%, respectively, from the year-ago period’s estimated levels.
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Crocs, Inc. (CROX) : Free Stock Analysis Report
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