An Overview of Norwegian Cruise Line's Earnings

Norwegian Cruise Line NCLH will release its quarterly earnings report on Thursday, 2024-10-31. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Norwegian Cruise Line to report an earnings per share (EPS) of $0.93.

The market awaits Norwegian Cruise Line's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

The company's EPS beat by $0.06 in the last quarter, leading to a 5.86% drop in the share price on the following day.

Here's a look at Norwegian Cruise Line's past performance and the resulting price change:

Analysts' Perspectives on Norwegian Cruise Line

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Norwegian Cruise Line.

The consensus rating for Norwegian Cruise Line is Buy, based on 13 analyst ratings. With an average one-year price target of $24.42, there's a potential 1.29% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of MakeMyTrip, Hyatt Hotels and Hilton Grand Vacations, three key industry players, offering insights into their relative performance expectations and market positioning.

• For MakeMyTrip, analysts project an Buy trajectory, with an average 1-year price target of $115.5, indicating a potential 379.05% upside.
• The consensus among analysts is an Neutral trajectory for Hyatt Hotels, with an average 1-year price target of $160.12, indicating a potential 564.12% upside.
• Analysts currently favor an Neutral trajectory for Hilton Grand Vacations, with an average 1-year price target of $41.83, suggesting a potential 73.5% upside.

Peers Comparative Analysis Summary

The peer analysis summary presents essential metrics for MakeMyTrip, Hyatt Hotels and Hilton Grand Vacations, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Norwegian Cruise Line ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

All You Need to Know About Norwegian Cruise Line

Norwegian Cruise Line is the world's third-largest cruise company by berths (around 66,500). It operates 32 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 13 passenger vessels on order among its brands through 2036, representing 41,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.

Norwegian Cruise Line: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Norwegian Cruise Line's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.57%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.89%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Norwegian Cruise Line's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 30.98% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Norwegian Cruise Line's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.82%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 19.39, Norwegian Cruise Line faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Norwegian Cruise Line visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.