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Norwegian Cruise (NCLH) Tops Q3 Earnings & Revenue Estimates


Norwegian Cruise Line NCLH performed very well in the third quarter of 2017, reporting better-than-expected earnings per share and revenues. The company’s earnings (excluding 12 cents from non-recurring items) came in at $1.86 per share, up 14.8% on a year-over-year basis.

Revenues came in at $1,651.7 million beating the Zacks Consensus Estimate of $1,644.4 million. The top line also improved 11.3% from the year-ago figure aided by an 11.2% increase in passenger ticket revenues. The same from onboard and other sources increased 11.3% on a year-over-year basis.

Gross yield increased 2% in the quarter on a year-over-year basis. Adjusted net yield grew 3% on a constant currency basis. The measure increased 3.1% on a reported basis. During the third quarter of 2017, fuel price per metric ton, net of hedges decreased 4.8% on a year-over-year basis. However, total cruise operating expenses increased 6.8% to $838.16 million backed by rise in fuel costs, among other factors.

Notably, Norwegian Cruise Line like its fellow cruise line operators — Royal Caribbean Cruises Ltd RCL and Carnival Corporation CCL — had to call off voyages and re-route ships to avoid stops at islands affected by the recent hurricanes.

In fact, hurricane Irma forced Norwegian Cruise Line to bring back two of its Miami-based ships. The company’s outperformance in the third quarter, despite the turbulence created by the hurricanes is certainly encouraging.


Norwegian Cruise Line expects earnings (adjusted) of approximately 62 cents per share in the fourth quarter of 2017. The Zacks Consensus Estimate is currently pegged at 71 cents per share.

For 2017, the company expects earnings (adjusted) of $3.90 per share. The Zacks Consensus Estimate of $3.95 per share is pegged above its guidance.

Fuel price per metric ton, net of hedges, is projected at $440 and $458 for the fourth quarter and 2017, respectively.

Norwegian Cruise Line carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Impressive Price Performance

Shares of Norwegian Cruise Line have performed impressively so far this year. The stock has rallied 30.6% compared with a 25.4% growth of the Zacks Leisure and Recreation Services industry.

In fact, Norwegian Cruise Line’s recent inclusion in the highly sought-after S&P 500 Index has boosted the stock.

The company replaced Level 3 Communications, which has been acquired by CenturyLink CTL. Its strong performance in the third quarter of 2017 is an added positive for the stock.

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