Latest news with #NorwegianCruiseLine
Yahoo
2 days ago
- Business
- Yahoo
3 Reasons to Sell NCLH and 1 Stock to Buy Instead
What a brutal six months it's been for Norwegian Cruise Line. The stock has dropped 21.8% and now trades at $20.26, rattling many shareholders. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Norwegian Cruise Line, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we're cautious about Norwegian Cruise Line. Here are three reasons why there are better opportunities than NCLH and a stock we'd rather own. Revenue growth can be broken down into changes in price and volume (for companies like Norwegian Cruise Line, our preferred volume metric is passenger cruise days). While both are important, the latter is the most critical to analyze because prices have a ceiling. Norwegian Cruise Line's passenger cruise days came in at 5.79 million in the latest quarter, and over the last two years, averaged 2.4% year-on-year declines. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Norwegian Cruise Line might have to lower prices or invest in product improvements to grow, factors that can hinder near-term profitability. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Over the last two years, Norwegian Cruise Line's demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 5.5%, meaning it lit $5.55 of cash on fire for every $100 in revenue. This is a stark contrast from its operating margin, and its investments in working capital/capital expenditures are the primary culprit. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Norwegian Cruise Line burned through $555.4 million of cash over the last year, and its $13.99 billion of debt exceeds the $184.4 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. Unless the Norwegian Cruise Line's fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. We remain cautious of Norwegian Cruise Line until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. Norwegian Cruise Line isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 9.5× forward P/E (or $20.26 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're fairly confident there are better investments elsewhere. Let us point you toward one of our all-time favorite software stocks. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
3 days ago
- Yahoo
Carnival Cruise Line passengers vote against US ports
Carnival Cruise Line passengers vote against US ports originally appeared on Come Cruise With Me. With economic concerns and increasing political tensions on the mind of many U.S. travelers, it's no surprise that more people are choosing domestic vacations this summer. As the U.S. continues to issue heightened travel warnings for U.S. citizens visiting certain countries, it wouldn't be shocking if more cruisers decided to stay closer to home for their next cruise cruise lines like Norwegian Cruise Line have reported experiencing a softening in bookings for Europe cruise itineraries this summer, although demand remains strong from Caribbean cruises departing from U.S. ports. Americans are increasingly choosing to forego long-haul international trips, but they aren't ditching travel altogether. States across the U.S. like Florida and Texas are reporting sharp increases in the numbers of domestic tourists visiting this year. With domestic destinations trending, you might expect Carnival Cruise Line — which prides itself on offering more accessible U.S. home ports than any other cruise line — to feature more cruise options that sail to close-to-home destinations. That's not the case, however, and it doesn't seem to be what Carnival passengers want, Key West, Florida, has long been a staple of Caribbean cruise itineraries, other U.S. cruise ports (outside of Alaska and Hawaii) have traditionally served much more often as departure ports for cruises than as cruise ports of call. This is changing, however, as popular U.S. cities like New Orleans, San Francisco, Boston, and Portland, Maine are increasingly being featured as stops on cruises departing from other lines like Princess Cruises, Celebrity Cruises, and Virgin Voyages are leading this trend, and although Carnival does offer some U.S. port stops, they're not a big focus. Carnival's cruise itineraries lean heavily into The Bahamas, Caribbean islands, and Mexico. Despite current travel trends, Carnival Cruise Line passengers are continuing to show strong interest in sailing to these popular destinations outside of U.S. waters as they plan for their next cruises. It turns out that most Carnival cruise passengers don't actually want more cruises that visit U.S. ports of call, at least according to a June 16 poll conducted by Carnival Cruise Line Brand Ambassador John Heald on his popular Facebook page that's followed by more than 600,000 results showed that thousands of Carnival cruisers don't want the cruise line to lean into the growing cruise trend that's seeing more U.S. ports of call featured on cruise itineraries. The poll was driven by a recent message Heald received from an unidentified Carnival passenger who said: 'Please include more American ports as places we visit during the cruise. Why does Carnival Cruise Line not include New Orleans, San Francisco, and Boston? These are just as good and fun places to visit as most of your selections in the Caribbean.' More Carnival cruise news:Through votes in the poll, about 5,700 Carnival cruisers indicated that they agreed and would like to visit those U.S. cities during their cruises. Many more passengers rejected the idea, however. About 15,000 Carnival cruisers voted for the poll option, 'I really do not have interest in having places like New Orleans, San Francisco, and Boston as part of my cruise itinerary.' In the comments on the poll post, some Carnival cruisers explained that the Caribbean is far more interesting to them than U.S. cities. 'If I'm taking a Caribbean cruise, get me there as fast as possible, without stopping at additional U.S. ports,' Bob Riedle commented. (The Arena Group will earn a commission if you book a cruise.) , or email Amy Post at or call or text her at 386-383-2472. This story was originally reported by Come Cruise With Me on Jun 27, 2025, where it first appeared.
Miami Herald
5 days ago
- Miami Herald
Carnival Cruise Line passengers vote against US ports
With economic concerns and increasing political tensions on the mind of many U.S. travelers, it's no surprise that more people are choosing domestic vacations this summer. As the U.S. continues to issue heightened travel warnings for U.S. citizens visiting certain countries, it wouldn't be shocking if more cruisers decided to stay closer to home for their next cruise vacations. Related: US shares troubling 'violent crime' warning for more cruise ports Some cruise lines like Norwegian Cruise Line have reported experiencing a softening in bookings for Europe cruise itineraries this summer, although demand remains strong from Caribbean cruises departing from U.S. ports. Americans are increasingly choosing to forego long-haul international trips, but they aren't ditching travel altogether. States across the U.S. like Florida and Texas are reporting sharp increases in the numbers of domestic tourists visiting this year. With domestic destinations trending, you might expect Carnival Cruise Line - which prides itself on offering more accessible U.S. home ports than any other cruise line - to feature more cruise options that sail to close-to-home destinations. That's not the case, however, and it doesn't seem to be what Carnival passengers want, either. Sign up for the Come Cruise With Me newsletter to save money on your next (or your first) cruise. Although Key West, Florida, has long been a staple of Caribbean cruise itineraries, other U.S. cruise ports (outside of Alaska and Hawaii) have traditionally served much more often as departure ports for cruises than as cruise ports of call. This is changing, however, as popular U.S. cities like New Orleans, San Francisco, Boston, and Portland, Maine are increasingly being featured as stops on cruises departing from other destinations. Related: Carnival Cruise Line raises red flag over new cruise 'hack' Cruise lines like Princess Cruises, Celebrity Cruises, and Virgin Voyages are leading this trend, and although Carnival does offer some U.S. port stops, they're not a big focus. Carnival's cruise itineraries lean heavily into The Bahamas, Caribbean islands, and Mexico. Despite current travel trends, Carnival Cruise Line passengers are continuing to show strong interest in sailing to these popular destinations outside of U.S. waters as they plan for their next cruises. It turns out that most Carnival cruise passengers don't actually want more cruises that visit U.S. ports of call, at least according to a June 16 poll conducted by Carnival Cruise Line Brand Ambassador John Heald on his popular Facebook page that's followed by more than 600,000 people. Be the first to see the best deals on cruises, special sailings, and more. Sign up for the Come Cruise With Me newsletter. Poll results showed that thousands of Carnival cruisers don't want the cruise line to lean into the growing cruise trend that's seeing more U.S. ports of call featured on cruise itineraries. The poll was driven by a recent message Heald received from an unidentified Carnival passenger who said: "Please include more American ports as places we visit during the cruise. Why does Carnival Cruise Line not include New Orleans, San Francisco, and Boston? These are just as good and fun places to visit as most of your selections in the Caribbean." More Carnival cruise news: Carnival Cruise Line fixes massive passenger pain pointCarnival cruisers get free drinks with this lesser-known dealGoogle scam targets Carnival, Royal Caribbean cruisers Through votes in the poll, about 5,700 Carnival cruisers indicated that they agreed and would like to visit those U.S. cities during their cruises. Many more passengers rejected the idea, however. About 15,000 Carnival cruisers voted for the poll option, "I really do not have interest in having places like New Orleans, San Francisco, and Boston as part of my cruise itinerary." In the comments on the poll post, some Carnival cruisers explained that the Caribbean is far more interesting to them than U.S. cities. "If I'm taking a Caribbean cruise, get me there as fast as possible, without stopping at additional U.S. ports," Bob Riedle commented. (The Arena Group will earn a commission if you book a cruise.) Make a free appointment with Come Cruise With Me's Travel Agent Partner, Postcard Travel, or email Amy Post at amypost@ or call or text her at 386-383-2472. Copyright 2025 The Arena Group, Inc. All Rights Reserved
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Travel Weekly
6 days ago
- Business
- Travel Weekly
Adam Malone takes on new role at NCL
Norwegian Cruise Line chief marketing officer Adam Malone is moving to a newly created role -- senior vice president of guest experience. Adam Malone Kiran Smith, a marketing veteran of consumer brands including Brookstone, iRobot and Stride Rite, is NCL's new chief marketing officer. In addition to her previous marketing positions, Smith was CEO of advertising agency Arnold Worldwide. Kiran Smith "Kiran is a brilliant marketing mind with an incredible reputation for consistently delivering compelling campaigns that break through the noise and captivate audiences," said David Herrera, cruise line's president.
Yahoo
6 days ago
- Business
- Yahoo
Carnival Cruises Past Market Expectations in Boon for Shares
The world's largest cruise company sailed well beyond Wall Street's expectations in its latest quarter. Carnival raised its full year profit guidance on Tuesday as bookings appeared to show travellers are unwilling to let tariffs get between them and Tampa and they won't allow geopolitics to close off their seaway to Greece. READ ALSO: What Does Mamdani's Primary Win Mean for New York Real Estate? and Shell Dismisses BP Takeover Talks as Mere 'Speculation' The choppy waters predicted for the cruise industry this year were based on the very real risks of trade wars and real wars, and all the economic disruption that one or both of those things would cause to travel demand. In late April, those worries seemed justified when Carnival competitor Norwegian Cruise Line missed Wall Street's profit and revenue estimates when it reported its first quarter results and warned of cracks in the consumer spending hull. Cue Carnival's results on Tuesday, which had investors smiling ear-to-eye like the sunkissed revelers on the deck of the 1,132-foot Jubilee as it pulls up to Cozumel. The company's second quarter revenue of $6.3 billion was up 9% year-over-year, and net income of $565 million, up from $92 million in the same period last year, was $185 million better than the guidance it issued in March. Customer deposits were at a record $8.5 billion in the quarter, 2026 prices are at record highs and bookings are level with last year's record pace. In a call with analysts, CEO Josh Weinstein offered some background on the good news: April showers, in this case, brought a flowering of May bookings. Weinstein said travelers were hesitant to book in April after President Donald Trump announced a round of planned global tariffs, but demand returned in the weeks that followed, suggesting consumers are inclined to leave staycations back in the pandemic years. Carnival shares rose 6.9% on Tuesday, and the industry leader's good news helped propel peers Norwegian up 4.3%, Royal Caribbean up 2.5%, and Viking up 3.4%. In the last year, Carnival shares have risen 56% thanks to strong consumer demand, and continued resilience coupled with a deescalation in the Middle East, which threatened to drive up fuel prices, buttressed its appeal on Wall Street. Wait and See: Weinstein said the Middle East conflict hasn't impacted Carnival, but told analysts not to read too much into that yet: 'While it has not yet had any discernible impact on our business, this is all unfolding too quickly in real time to try to project how it could impact our future business.' What could dent cruise industry revenues could be a new, much less heated geopolitical trend: port taxes. In recent months Alaska, Hawaii, Norway, and Mexico have all introduced levies on cruise ships or passengers, with cruise ship industry lobbies filing lawsuits in multiple jurisdictions in attempts to block them. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter. Sign in to access your portfolio
