Q1 Rundown: Norwegian Cruise Line (NYSE:NCLH) Vs Other Hotels, Resorts and Cruise Lines Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Norwegian Cruise Line (NYSE:NCLH) and the rest of the hotels, resorts and cruise lines stocks fared in Q1.
Hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 15 hotels, resorts and cruise lines stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 0.8% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better than others, they collectively declined, with share prices falling 1.3% on average since the previous earnings results.
Norwegian Cruise Line (NYSE:NCLH)
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.
Norwegian Cruise Line reported revenues of $2.19 billion, up 20.3% year on year, falling short of analysts' expectations by 2%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.
“We are pleased to report that we exceeded our guidance metrics for the first quarter of 2024. Thanks to robust consumer demand and continued success on our operational efficiency efforts, we are raising our 2024 full-year guidance for key metrics including Net Yield, Adjusted EBITDA and Adjusted EPS,” said Mark A. Kempa, executive vice president and chief financial officer of Norwegian Cruise Line Holdings Ltd.
The stock is down 15.5% since the results and currently trades at $15.98.
Is now the time to buy Norwegian Cruise Line? Access our full analysis of the earnings results here, it's free.
Best Q1: Playa Hotels & Resorts (NASDAQ:PLYA)
Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ:PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $300.6 million, up 9.8% year on year, outperforming analysts' expectations by 6.3%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates.
Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. The stock is down 10.6% since the results and currently trades at $8.44.
Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Choice Hotels (NYSE:CHH)
With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.
Choice Hotels reported revenues of $331.9 million, down 0.3% year on year, falling short of analysts' expectations by 3.2%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 5.5% since the results and currently trades at $115.42.
Read our full analysis of Choice Hotels's results here.
Travel + Leisure (NYSE:TNL)
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Travel + Leisure reported revenues of $916 million, up 4.2% year on year, surpassing analysts' expectations by 1.3%. It was a good quarter for the company, with a decent beat of analysts' revenue and earnings estimates.
The stock is down 4.2% since the results and currently trades at $44.15.
Read our full, actionable report on Travel + Leisure here, it's free.
Carnival (NYSE:CCL)
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Carnival reported revenues of $5.41 billion, up 22% year on year, in line with analysts' expectations. It was a decent quarter for the company, with a solid beat of analysts' earnings estimates.
The stock is down 11% since the results and currently trades at $15.17.
Read our full, actionable report on Carnival here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
