Norwegian Cruise Line to Report First-Quarter Earnings Amid Challenges

Norwegian Cruise Line Holdings Ltd. (NCLH), based in Miami, Florida, provides a range of cruise travel services. The company currently has a market capitalization of $7.5 billion and offers diverse itineraries and themed cruises. Services are marketed through various channels including retail and travel agents, international sales, incentive sales, and direct-to-consumer approaches. NCLH is set to announce its fiscal first-quarter earnings for 2025 prior to market opening on Wednesday, April 30.

Analysts’ Expectations for Earnings

Analysts predict that NCLH will report a profit of $0.02 per share, which represents a decline of 81.8% compared to $0.11 per share from the same quarter last year. Notably, the company has exceeded consensus expectations in each of the last four quarters.

Full-Year Projections and Growth Trends

For the entire fiscal year, projections estimate NCLH’s EPS to be $1.80, reflecting a 9.8% increase from $1.64 in fiscal 2024. Further projections indicate that EPS could rise to $2.22 in fiscal 2026, marking a 23.3% year-over-year increase.

Stock Performance and Market Comparisons

NCLH shares have underperformed against the S&P 500 Index (SPX), which has seen gains of 8.2% over the last 52 weeks. In contrast, NCLH shares have declined by 11.6% during the same period. The company also lagged behind the Consumer Discretionary Select Sector SPDR Fund (XLY), which increased by 11.4% in that timeframe.

Challenges such as slow growth in passenger cruise days raised concerns about customer adoption. Additionally, investor apprehension has arisen from uncertainties related to tariffs and interest rates that may impact consumer spending.

Recent Financial Performance

On February 27, NCLH experienced a more than 5% decline in share price after announcing its fourth-quarter results. However, the adjusted EPS of $0.26 exceeded Wall Street’s expectations of $0.11. Revenue for that quarter reached $2.11 billion, surpassing forecasts of $2.09 billion. Looking ahead, NCLH anticipates an adjusted EPS of $2.05 for the full year.

Analysts’ Consensus Rating

The consensus rating for NCLH stock is “Moderate Buy,” with considerable optimism from analysts. Out of 21 analysts following the stock, 14 provide a “Strong Buy” recommendation while seven suggest a “Hold.” The average analyst price target for NCLH stands at $27.48, indicating a significant potential upside of 60.2% from current prices.

On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data contained in this article are intended solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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