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In fact, according to Reuters, travelers have been booking 2024 cruises at “greater volumes” than before the pandemic. Plus, about 35.7 million vacationers are expected to cruise this year – up from 31.5 million in 2023. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. Return on equity is useful for comparing the quality of different businesses.
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Cruise stocks rallied in intraday trading Tuesday after a strong earnings report and forecast from Norwegian Cruise Line Holdings (NCLH). Norwegian Cruise Line (NCLH) rises on 4Q revenue and 1Q upbeat guidance. NCLH's incredibly strong results highlight the strength in its brand and the cruise industry, notes Ivan Feinseth. According to 15 analysts, the average rating for NCLH stock is "Hold." The 12-month stock price forecast is $20.07, which is an increase of 9.73% from the latest price. Royal Caribbean also just raised its annual adjusted earnings per share to a new range of $9.90 to $10.10 for a prior range of $9.50 to $9.70.
Why You Should Consider Debt When Looking At ROE
Coronavirus-induced changes in consumer behavior with regard to travel had altered the economic performance of Norwegian Cruise Line Holdings, affecting its ability to generate excess economic rents. However, as consumers returned to cruising after the 15-month sailing halt that ended in July 2021, they regained their appetite for travel, bolstered by the value proposition the holiday provides. With ships fully deployed at historical occupancy levels, pricing surpassed prepandemic levels in 2023, and pricing momentum has persisted into 2024. While Norwegian could intermittently see pricing competition in periods of macroeconomic distress, we believe its freestyle offering and attractive itineraries will keep passengers engaged with the brand. On the cost side, while higher oil prices and unfavorable foreign exchange could elevate costs at times, we expect management will focus on extracting further efficiencies as the business continues to scale. Over time, we expect both pricing and costs to normalize at low-single-digit rates.
NYSE: NCLH
All of those numbers are only expected to increase from here, with much stronger demand. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. If you buy and hold Norwegian Cruise Line stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong.
NCLH Analyst Ratings By Month
For example, you’ll be surprised how the stock valuation for Northrop Grumman vs. Atlas Air Worldwide Holdings shows a disconnect with their relative operational growth. But this stock is soaring today because of the positive prevailing trends in the business. The cruise line can carry more cruisers now than ever (higher capacity), has full occupancy, average ticket prices are up, and onboard spending is up, as well. NCLH, -1.48% jumped 6.6% in premarket trading Tuesday, after the cruise operator reported a wider-than-expected fourth-quarter loss, but expects a surpris... For fiscal year 2023, the company posted a 32% jump in revenue, as compared to 2019. In addition, advance ticket sales at the close of 2023 were up 56% from 2019 to $3.2 billion.
A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. Now while cruise stocks have moved considerably over the last year, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities.
However the stock is trading higher thanks to upbeat first-quarter guidance and a full-yea... This year's ‘wave season' will break revenue records for cruise lines, but investors are wary of the massive debts the industry took on during the pandemic. Norwegian Cruise Line Holdings Ltd. engages in the provision of cruise travel services. It provides cruise experiences for travelers with itineraries in Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii. Its brands include Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company was founded in 1966 and is headquartered in Miami, FL.
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MIAMI , Feb. 15, 2024 /PRNewswire/ -- Oceania Cruises , the world's leading culinary- and destination-focused cruise line, has announced that the premiere issue of their brand new Your World magazine ... A Norwegian cruise ship has been denied permission to dock in Mauritius over fears of a potential cholera outbreak on board. For the full year 2024, the company expects an adjusted profit of about $635 million, or $1.23 per share. MIAMI , March 20, 2024 /PRNewswire/ -- Oceania Cruises , the world's leading culinary- and destination-focused cruise line, has announced the appointment of its two Master Chefs of France, Chef Alexi... Harry Sommer, CEO of Norwegian Cruise Line, joins CNBC's 'The Exchange' to discuss Norwegian's new ship order, travel trends, and more. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
Why Carnival, Booking Holdings, and Norwegian Cruise Line Are No-Brainer Buys Right Now - The Motley Fool
Why Carnival, Booking Holdings, and Norwegian Cruise Line Are No-Brainer Buys Right Now.
Posted: Wed, 14 Jun 2023 07:00:00 GMT [source]
Combining Norwegian Cruise Line Holdings' Debt And Its 55% Return On Equity
Norwegian Posts Strong Update on Bookings and Earnings - Cruise Hive
Norwegian Posts Strong Update on Bookings and Earnings.
Posted: Mon, 01 May 2023 07:00:00 GMT [source]
Norwegian has spent the better part of the last year raising funds via debt and equity issuances, with its debt load standing at about $11.8 billion at the end of Q4, up from about $6.8 billion a year ago. The higher interest costs are likely to weigh on the company’s profitability going forward. Longer-term profitability also remains a concern, given potentially higher interest expenses. The company’s total debt rose to about $11.8 billion at the end of 2020, up from around $6.8 billion at the end of 2019. That said, the stock still remains down by about 50% from its pre-Covid highs, making the risk to reward proposition relatively attractive for investors. All thanks to positive booking trends, and stronger consumer demand for cruises.
Jenny Horne explains Norwegian's big plans for the next decade. From new ships to its private Caribbean island, get the latest details in this 1-minute breakdown of Norwegian Cruise Line (NCLH). Big gains might come from the smallest of the country's three leading cruise line operators. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
According to analysts, Norwegian Cruise Line's stock has a predicted upside of 13.81% based on their 12-month stock forecasts. Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. The Motley Fool has no position in any of the stocks mentioned. Set sail on an epic 59-day Grand Voyage from Barcelona to Singapore Download images of Riviera here MIAMI , Jan. 4, 2024 /PRNewswire/ -- Oceania Cruises , the world's leading culinary- and destination...
The company expects an adjusted loss in its upcoming quarter, casting a shadow over several positive developments with the business. As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics. While the stock is slightly overbought at an all-time high, it could push even higher with demand showing no signs of slowing. This dilution could have a mild adverse impact on Norwegian stock. But the business is otherwise performing quite well, which should be encouraging news for shareholders. In 2023, the company had net cash from operating activities of $2 billion and repaid $1.9 billion in debt.
The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.55 in profit. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... Specifically, Norwegian is calling for Q1 adjusted net income of $50 million, while Wall Street had expected an adjusted net loss.
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