Norwegian Cruise (NCLH) Q4 Earnings Top, Covid-19 Clouds View
Zacks Investment Research | Feb 19, 2020 09:58PM ET
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) has reported better-than-expected fourth-quarter 2019 results. The company’s earnings and revenues surpassed the Zacks Consensus Estimate for the fourth consecutive quarter.
Earnings & Revenue Discussion
Adjusted earnings of 73 cents per share surpassed the Zacks Consensus Estimate of 70 cents. However, the bottom line declined 14.1% from the year-ago quarter.
Revenues amounted to $1,480.6 million in the fourth quarter, surpassing the consensus mark of $1,431 million and improving 7.2% year over year. The top line was driven by an increase of 3.4% in passenger ticket revenues and rise of 15.8% in onboard and other revenues.
Strong onboard spending had a positive impact on the reported quarter’s revenues as well. Moreover, an increase in capacity days with the addition of Norwegian Encore to the fleet drove the top line.
Gross yield (total revenues per Capacity Day) rose 4% in the quarter on a year-over-year basis. On a constant-currency (cc) basis, net yield rose 1.3% in the reported quarter.
Expenses & Operating Results
Total cruise operating expenses increased 8.6% in the quarter under review from the year-ago quarter. The increase can be attributed to redeployment of Norwegian Joy and rise in direct costs owing to air promotions.
Gross cruise costs per capacity day rose 5.6%. Adjusted Net cruise costs (excluding fuel) per Capacity Day increased 4% at cc and 3.4% on a reported basis. Fuel price per metric ton (net of hedges) was up 2.4% to $508 in the quarter under review.
Net interest expenses were $73.2 million in the fourth quarter, down from $68.2 million in the year-ago quarter.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
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