Cruise company Norwegian Cruise Line (NYSE: NCLH) will be announcing earnings results this Monday before market hours. Here’s what investors should know.
Norwegian Cruise Line missed analysts’ revenue expectations last quarter, reporting revenues of $2.94 billion, up 4.7% year on year. It was a slower quarter for the company, with a miss of analysts’ revenue estimates and EBITDA guidance for next quarter missing analysts’ expectations. It reported 6.83 million passenger cruise days, up 4.7% year on year.
Is Norwegian Cruise Line a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Norwegian Cruise Line’s revenue to grow 11.1% year on year, improving from the 6.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Norwegian Cruise Line has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Norwegian Cruise Line’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Frontier posted flat year-on-year revenue, beating analysts’ expectations by 2.3%, and Hilton reported revenues up 10.9%, topping estimates by 3.3%. Frontier traded down 12% following the results while Hilton’s stock price was unchanged.
Read our full analysis of Frontier’s results here and Hilton’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Norwegian Cruise Line is up 12.8% during the same time and is heading into earnings with an average analyst price target of $27.25 (compared to the current share price of $24.78).
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