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Norwegian Cruise Line Holdings Ltd. (NCLH) is a Miami-based cruise operator with three brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. Valued at a market cap of nearly $12 billion, it offers flexible, innovative cruises to 490+ destinations worldwide and emphasizes sustainability through eco-friendly practices. It is expected to announce its fiscal Q4 earnings results before the market opens on Tuesday, Feb. 25.
Ahead of this event, analysts project the cruise company to report a profit of $0.05 per share, up 121.7% from a loss of $0.23 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on one another occasion.
For fiscal 2024, analysts expect NCLH to report an EPS of $1.50, significantly up by 257.1% from $0.42 in fiscal 2023. Moreover, EPS is expected to increase 24% year-over-year to $1.86 in fiscal 2025.
Shares of NCLH have gained 59.1% over the past year, lagging behind the S&P 500 Index's ($SPX) 26.5% rise but outpacing the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.1% return over the same period.
Over the past year, NCLH has outperformed the broader market, driven by strong consumer demand, especially for cruises to Alaska and Canada, along with a boost in onboard spending. Positive analyst outlooks, including upgraded ratings and higher price targets, have further fueled investor confidence. Additionally, the cruise industry's resurgence, fueled by heightened consumer health and travel confidence, has played a key role in NCLH's strong performance.
However, on Jan. 3, Norwegian Cruise Line’s shares fell over 2%, weighed down by a 2.5-month high in WTI crude prices, which could drive up fuel costs and tighten profit margins.
Analysts' consensus view on Norwegian Cruise Line’s stock is cautiously bullish, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, 10 recommend a "Strong Buy," six suggest a "Hold," and one indicates a “Strong Sell.” This configuration is more bullish than two months ago, with eight analysts suggesting a "Strong Buy."
The average analyst price target for NCLH is $30.22, indicating an 11.2% potential upside from the current price levels.
