Markets

Norwegian Cruise Line (NCLH) Q4 Earnings Beat, Improve Y/Y

Norwegian Cruise Line Holdings Ltd.NCLH performed very well in the fourth quarter of 2017, reporting better-than-expected earnings per share and revenues. The company's earnings (excluding 25 cents from non-recurring items) came in at 68 cents per share, up 21.4% on a year-over-year basis. Higher revenues aided results.

The company's revenues of $1,249.6 million, fell short of the Zacks Consensus Estimate of $1,251.7 million. However, the top line improved 11.1% on a year-over-year basis. The increase was aided by a 9.9% increase in passenger ticket revenues to $833.3 million. The same from onboard and other sources was up 13.5% on a year-over-year basis to $416.3 million. Gross yield increased 2.5% in the quarter on a year-over-year basis.

Adjusted net yield grew 3.4% on a constant currency basis. The measure was up 3.9% on a reported basis. Fuel price per metric ton increased marginally to $460. Total cruise operating expenses were up 8.4% to $753.4 million backed by rise in fuel costs, among other factors.

Moreover, marketing, general and administrative expenses increased significantly to $185.8 million. Gross Cruise Costs (sum of cruise operating expense and marketing, general and administrative cost) per Capacity Day increased 1.2% in the final quarter of 2017.

Notably, Norwegian Cruise Line's fellow cruise line operator - Royal Caribbean Cruises Ltd. RCL - had also reported better-than-expected fourth quarter 2017 results last month.

Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise

Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise | Norwegian Cruise Line Holdings Ltd. Quote

Outlook

Norwegian Cruise Line expects earnings per share (excluding special items) of approximately 52 cents in the first quarter of 2018. The Zacks Consensus Estimate is pegged at 47 cents per share.

For full-year 2018, the company anticipates earnings (excluding special items) in the band of $4.45 to $4.65. The Zacks Consensus Estimate of $4.59 per share lies within the company's guidance range. Fuel price per metric ton, net of hedges, is projected at $450 and $465 for first-quarter and full-year 2018, respectively.

Zacks Rank & Key Picks

Norwegian Cruise Line carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader Consumer Discretionary sector are Cinemark Holdings, Inc. CNK and Viacom Inc. VIAB carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Shares of Cinemark Holdings and Viacom have gained 17.5% and 23.8%, respectively, in the last three months.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Viacom Inc. (VIAB): Free Stock Analysis Report

Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report

Cinemark Holdings Inc (CNK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VIAB RCL NCLH CNK

Other Topics

Earnings Stocks

Latest Markets Videos