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Norwegian Cruise (NCLH) Q2 Earnings Top Estimates,'24 View Up
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
NCLH continues to build strong momentum, having exceeded its guidance metrics in each quarter of the year. Robust market demand added to the upside. It remains committed to improving efficiencies, reducing costs and strategically restoring margins.
Given the substantial progress made so far and current demand expectations, the company raised its 2024 full-year guidance. It projects an adjusted earnings per share (EPS) growth of 120% from 2023 levels while keeping cost guidance flat relative to the prior year’s tally. Much optimism prevails on account of strong yield growth, disciplined cost management and the initiatives under the Charting the Course strategy.
Following the results, the company’s shares increased 4% in the pre-market trading session on Jul 31.
Earnings & Revenue Discussion
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise reported an adjusted EPS of 40 cents, topping the Zacks Consensus Estimate of 34 cents by 17.6%. In the prior-year quarter, the company reported an adjusted EPS of 30 cents.
Quarterly revenues of $2.37 billion beat the consensus mark by 0.1%. In the prior-year quarter, the company reported revenues of $2.2 billion.
Passenger ticket revenues were $1.6 billion compared with $1.48 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.55 billion.
Onboard and other revenues increased to $770.4 million from $727 million reported in the prior-year quarter. We expected onboard and other revenues to be $799.8 million.
Expenses & Operating Results
Total cruise operating expenses increased 5.1% year over year to $1.45 billion from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from a rise in payroll, fuel, onboard and other expenses.
During the second quarter, gross cruise costs per Capacity Day was $315.3, flat year over year. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $163.4, almost flat year over year. During the quarter, fuel price per metric ton (net of hedges) came in at $719 compared with $715 reported in the prior-year quarter.
Net interest expenses were $178.5 million compared with $177.7 million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2024, the company had cash and cash equivalents of $594.1 million compared with $402.4 million at the end of 2023. Long-term debt was $11.9 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the second quarter, the company reported strong consumer demand, with most new bookings shifting toward 2025 sailings. It remains at the upper range of its optimal booked position on a 12-month forward basis. Occupancy during the quarter came in at 105.9%. It reported strong advance ticket sales of $3.9 billion, up 11% from 2023 levels.
Q3 & 2024 Guidance
For third-quarter 2024, NCLH anticipates occupancy to be approximately 108.2% and Capacity Days to be about 6.04 million. During the quarter, adjusted interest expenses are expected to be approximately $180 million, while depreciation and amortization are anticipated to be about $225 million. Adjusted EBITDA is expected to be about $870 million. Adjusted EPS are projected to be nearly 92 cents.
For 2024, the company anticipates occupancy to be approximately 105.2% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are expected to be approximately $735 million (down from the prior expectation of about $740 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is expected to be nearly $2.35 billion, up from the previously-expected $2.25 billion. For 2024, adjusted EPS are currently expected to be nearly $1.53, up from prior expectations of about $1.32.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 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 backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
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Norwegian Cruise (NCLH) Q2 Earnings Top Estimates,'24 View Up
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported solid second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
NCLH continues to build strong momentum, having exceeded its guidance metrics in each quarter of the year. Robust market demand added to the upside. It remains committed to improving efficiencies, reducing costs and strategically restoring margins.
Given the substantial progress made so far and current demand expectations, the company raised its 2024 full-year guidance. It projects an adjusted earnings per share (EPS) growth of 120% from 2023 levels while keeping cost guidance flat relative to the prior year’s tally. Much optimism prevails on account of strong yield growth, disciplined cost management and the initiatives under the Charting the Course strategy.
Following the results, the company’s shares increased 4% in the pre-market trading session on Jul 31.
Earnings & Revenue Discussion
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
Norwegian Cruise reported an adjusted EPS of 40 cents, topping the Zacks Consensus Estimate of 34 cents by 17.6%. In the prior-year quarter, the company reported an adjusted EPS of 30 cents.
Quarterly revenues of $2.37 billion beat the consensus mark by 0.1%. In the prior-year quarter, the company reported revenues of $2.2 billion.
Passenger ticket revenues were $1.6 billion compared with $1.48 billion reported in the prior-year quarter. Our model suggested passenger ticket revenues to be $1.55 billion.
Onboard and other revenues increased to $770.4 million from $727 million reported in the prior-year quarter. We expected onboard and other revenues to be $799.8 million.
Expenses & Operating Results
Total cruise operating expenses increased 5.1% year over year to $1.45 billion from the year-ago quarter’s levels. The company’s expenses in the quarter primarily stemmed from a rise in payroll, fuel, onboard and other expenses.
During the second quarter, gross cruise costs per Capacity Day was $315.3, flat year over year. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $163.4, almost flat year over year. During the quarter, fuel price per metric ton (net of hedges) came in at $719 compared with $715 reported in the prior-year quarter.
Net interest expenses were $178.5 million compared with $177.7 million reported in the year-ago quarter.
Balance Sheet
As of Jun 30, 2024, the company had cash and cash equivalents of $594.1 million compared with $402.4 million at the end of 2023. Long-term debt was $11.9 billion compared with $12.31 billion as of 2023 end.
Booking Update
During the second quarter, the company reported strong consumer demand, with most new bookings shifting toward 2025 sailings. It remains at the upper range of its optimal booked position on a 12-month forward basis. Occupancy during the quarter came in at 105.9%. It reported strong advance ticket sales of $3.9 billion, up 11% from 2023 levels.
Q3 & 2024 Guidance
For third-quarter 2024, NCLH anticipates occupancy to be approximately 108.2% and Capacity Days to be about 6.04 million. During the quarter, adjusted interest expenses are expected to be approximately $180 million, while depreciation and amortization are anticipated to be about $225 million. Adjusted EBITDA is expected to be about $870 million. Adjusted EPS are projected to be nearly 92 cents.
For 2024, the company anticipates occupancy to be approximately 105.2% and Capacity Days to be about 23.5 million. During the year, adjusted interest expenses are expected to be approximately $735 million (down from the prior expectation of about $740 million). Depreciation and amortization are anticipated at nearly $895 million. Adjusted EBITDA during the year is expected to be nearly $2.35 billion, up from the previously-expected $2.25 billion. For 2024, adjusted EPS are currently expected to be nearly $1.53, up from prior expectations of about $1.32.
Zacks Rank
Norwegian Cruise currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 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 backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America and Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. Its efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported break-even earnings, missing the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year, but the bottom line declined.
The quarterly results reflect growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to Canadian consumers. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.