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Royal Caribbean saw its stock jump after posting narrower than expected fourth quarter losses and bookings earlier in February. Morgan Stanley had upgraded the rival company in January, naming it the "superior cruise operator" coming out of the pandemic. For the quarter ending May 31, 2024, CCL’s revenue is expected to increase 15.2% year-over-year to $5.66 billion. Over the past year, the stock has gained 44.8% to close the last trading session at $14.12.
Has Global Partners (GLP) Outpaced Other Oils-Energy Stocks This Year?
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Norwegian Cruise Line reports first profitable year since 2019
That said, the stock still remains down by about 50% from its pre-Covid highs, making the risk to reward proposition relatively attractive for investors. The Goldman Sachs Group assumed coverage on shares of Norwegian Cruise Line in a research note on Wednesday, March 13th. They issued a "neutral" rating and a $19.00 price target for the company. Wells Fargo & Company reissued an "equal weight" rating and issued a $18.00 price target on shares of Norwegian Cruise Line in a research note on Friday, January 5th. Susquehanna increased their price target on shares of Norwegian Cruise Line from $20.00 to $21.00 and gave the company a "neutral" rating in a research note on Wednesday, February 28th.
Norwegian Cruise Line Holdings Ltd
The company reported adjusted EBITDA of $1 billion, up 145% over the prior-year quarter. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. NCLH, -1.48% jumped 6.6% in premarket trading Tuesday, after the cruise operator reported a wider-than-expected fourth-quarter loss, but expects a surpris...
Knights of Columbus Asset Advisors LLC Purchases 182,430 Shares of Norwegian Cruise Line Holdings Ltd. (NYSE ... - MarketBeat
Knights of Columbus Asset Advisors LLC Purchases 182,430 Shares of Norwegian Cruise Line Holdings Ltd. (NYSE ....
Posted: Sat, 20 Apr 2024 13:31:58 GMT [source]
About MarketBeat
It is ranked last out of four stocks in the Travel – Cruises industry. However, these companies are still laden with massive debt, which they had undertaken during the pandemic to stay afloat. The high debt levels have meant that cruise lines slowed capital expenditures, delayed overhaul projects, and deferred new construction. Cruise companies are tackling challenges like over-tourism, with destinations around the world limiting or outright banning them from ports.
The company spent the better part of the last year raising funds, with its debt load roughly doubling to $12 billion between December 2020 and the end of March 2020. This should lead to higher interest costs, constraining the company’s long-term profitability. Moreover, shareholders have also been significantly diluted by the company’s equity issuances, with shares outstanding rising to 370 million as of April 2021, up from 213 million in early 2020. Ticket prices have also apparently been strong, trending above 2019 levels. The cruise company reported fourth quarter losses of $1.04 per share, more than analysts' estimates of 85 cents.
Norwegian Cruise Line reports first profitable year since 2019 - CNBC
Norwegian Cruise Line reports first profitable year since 2019.
Posted: Tue, 27 Feb 2024 08:00:00 GMT [source]
Combining Norwegian Cruise Line Holdings' Debt And Its 55% Return On Equity
In terms of the trailing-12-month EBITDA margin, RCL’s 31.29% is 183.3% higher than the 11.04% industry average. Its 44.70% trailing-12-month Return on Common Equity is 297.8% higher than the 11.24% industry average. On the other hand, the stock’s 0.40x trailing-12-month asset turnover ratio is 59.7% lower than the 1x industry average. In terms of the trailing-12-month asset turnover ratio, NCLH’s 0.45x is 55.1% lower than the 1x industry average. Its 36.04% trailing-12-month gross profit margin is marginally lower than the 36.18% industry average. Likewise, the stock’s 1.94% trailing-12-month net income margin is 58.2% lower than the 4.65% industry average.
Norwegian Continues to Benefit From Consumers' Appetite for Travel
Despite the promising outlook, not all travel stocks are well-positioned to benefit. Therefore, investors could look to avoid Norwegian Cruise Line Holdings Ltd. (NCLH), given its poor fundamentals and weak growth prospects. On the other hand, waiting for an opportune entry point in Royal Caribbean Cruises Ltd. (RCL) and Carnival Corporation & plc (CCL) could be prudent.
The company’s adjusted net loss and adjusted loss per share narrowed 82.5% and 82.7% to $77.12 million and $0.18, respectively. In addition, as of December 31, 2023, its cash and cash equivalents came in at $402.42 million, compared to $946.99 million as of December 31, 2022. Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook.
However the stock is trading higher thanks to upbeat first-quarter guidance and a full-yea... 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. CEO Frank Del Rio said the company's first 2023 quarter "will be the highest cost quarter," but added that the second half will be better. Norwegian is projecting losses of 45 cents per share in the first quarter, 10 cents higher than Wall Street had anticipated.
That said, the longer-term outlook for the company remains mixed, in our view. Booking trends have also been mixed, with reservations for the second half of 2021 apparently remaining below historical levels, although early trends for 2022 look strong, per the company. Norwegian has spent the better part of the last year raising funds via debt and equity issuances, with its debt load standing at about $11.8 billion at the end of Q4, up from about $6.8 billion a year ago. The higher interest costs are likely to weigh on the company’s profitability going forward. Longer-term profitability also remains a concern, given potentially higher interest expenses. The company’s total debt rose to about $11.8 billion at the end of 2020, up from around $6.8 billion at the end of 2019.
The firm has a market cap of $7.79 billion, a PE ratio of 65.32, a PEG ratio of 0.38 and a beta of 2.60. The company has a debt-to-equity ratio of 40.94, a current ratio of 0.22 and a quick ratio of 0.19. The company's 50-day simple moving average is $18.74 and its 200-day simple moving average is $17.32. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt.
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