Charting New Waters: Norwegian Cruise Line Unveils Ambitious Plans For Eight Ships

This could also prove positive for the cruising business, as there could be some revival in demand from families. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank.

Analysts' Consensus Price Target

Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Overall, according to the analyst, the positives surely outweigh the negatives. The strategy is expected to boost Norwegian Cruise’s product offering, guest experiences, and operational infrastructure. It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.42; value investors should take notice. Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better. This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

Charting New Waters: Norwegian Cruise Line Unveils Ambitious Plans For Eight Ships

Some of its debt will convert to shares because of how it was arranged. Specifically, Norwegian is calling for Q1 adjusted net income of $50 million, while Wall Street had expected an adjusted net loss. For the year, the company is expecting earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.2 billion, a strong 18% increase from 2023.

Dive into Norwegian Cruise Line Holdings

As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics. Harry Sommer, CEO of Norwegian Cruise Line, joins CNBC's 'The Exchange' to discuss Norwegian's new ship order, travel trends, and more. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed.

Financial Performance

Owning cruise stocks when supply growth has been low for an extended period of time, as per the analyst. While the headline of eight ships might make investors panic, the analyst urged them to look at the fine print. Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Its Oceania Cruises features seven smaller luxury ships specializing in culinary and destination-focused cruising with a 684 to 1,250 guest capacity. NCLH stock fares better after Case 1, with an expected return of 4.5% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an expected return of 1.6% for Case 2. Ticket prices have also apparently been strong, trending above 2019 levels. Although Norwegian’s higher levels of leverage (debt has doubled to $12 billion from pre-pandemic levels) are a concern, the stock could still be worth a look considering that it remains down by about 45% from its 2019 levels. Norwegian Cruise Line CEO Harry Sommer expressed that 2023 was a landmark year for the company.

Norwegian Cruise Line Holdings Ltd. (NCLH) is Attracting Investor Attention: Here is What You Should Know - Yahoo Finance

Norwegian Cruise Line Holdings Ltd. (NCLH) is Attracting Investor Attention: Here is What You Should Know.

Posted: Thu, 21 Mar 2024 07:00:00 GMT [source]

In 2023, the company had net cash from operating activities of $2 billion and repaid $1.9 billion in debt. Revenue was ahead of guidance, whereas its net loss was a little more than expected. NCLH now has 13 ships on order over the next 12 years for a combined 41,000 berths, representing about 65% capacity growth, noted the analyst. The new ship orders across all three brands are scheduled for delivery over a ten-year period, between 2026 and 2036.

From new ships to its private Caribbean island, get the latest details in this 1-minute breakdown of Norwegian Cruise Line (NCLH). Upgrade to MarketBeat All Access to add more stocks to your watchlist. Norwegian Cruise Line has been rated by Barclays, Citigroup, Mizuho, Morgan Stanley, Stifel Nicolaus, Susquehanna, The Goldman Sachs Group, and Truist Financial in the past 90 days.

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For Q4 2023, Norwegian reported an EPS loss of 18 cents vs 14 cents consensus analyst estimates. Net loss was $106.5 million versus $482.5 million in the year-ago period. Revenues surged 30.8% YoY to $1.986 billion, beating $1.960 billion consensus estimates.

While Norwegian is likely to start cruises from the U.S. around early August, it says that it now plans to operate 23 of its 28 ships through early 2022. Moreover, the company said that it would begin cruising to Alaska from early August following the passage of the U.S. Alaska Tourism Restoration Act, which temporarily enables cruise ships to sail to Alaska, bypassing a legal requirement to make a stop at ports in Canada, which has banned cruses until 2022. Cruise companies had previously canceled their trips to Alaska, which is a popular summer cruising destination. Separately, the CDC also recently issued new guidelines easing mask-wearing requirements and social-distancing guidelines for fully vaccinated passengers on cruises.

Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks. Norwegian Cruise Line Holdings Ltd. operates a fleet of passenger cruise ships. The Company offers an array of cruise itineraries and theme cruises, as well as markets its services through various distribution channels including retail and travel agents, international and incentive sales, and consumer direct. A company's earnings performance is important for value investors as well.