Cruise company Norwegian Cruise Line (NYSE: NCLH) will be reporting results this Monday before market hours. Here’s what investors should know.
Norwegian Cruise Line missed analysts’ revenue expectations last quarter, reporting revenues of $2.24 billion, up 6.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a miss of analysts’ adjusted operating income estimates. It reported 6.37 million passenger cruise days, up 8.4% 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 10.9% year on year, a reversal from the 2.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 11.9%, beating analysts’ expectations by 2%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. Hilton Grand Vacations traded up 5.9% following the results while American Airlines was also up 5.2%.
Read our full analysis of Hilton Grand Vacations’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 7% on average over the last month. Norwegian Cruise Line is down 2.5% during the same time and is heading into earnings with an average analyst price target of $24.61 (compared to the current share price of $18.88).
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