Core Insights - Viking Holdings (VIK) reported revenue of $897.06 million for Q1 2025, marking a year-over-year increase of 24.9% and exceeding the Zacks Consensus Estimate by 4.49% [1] - The company reported an EPS of -$0.24, which is a decline from -$0.03 a year ago, but it surpassed the consensus EPS estimate of -$0.26 by 7.69% [1] Financial Performance Metrics - Viking's occupancy rate was 94.5%, slightly above the three-analyst average estimate of 94.3% [4] - The net yield was reported at $544, compared to the average estimate of $538.03 from three analysts [4] - Capacity PCDs reached 1,192,367 Days, exceeding the average estimate of 1,176,407 Days [4] - PCDs totaled 1,126,858 Days, also above the average estimate of 1,112,065 Days [4] - Onboard and other revenue was $62.09 million, slightly below the average estimate of $62.62 million from five analysts [4] - Cruise and land revenue was reported at $834.97 million, significantly higher than the average estimate of $796.13 million from five analysts [4] Stock Performance - Viking's shares have returned +25.5% over the past month, outperforming the Zacks S&P 500 composite's +13.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Viking Holdings (VIK) reported a quarterly loss of $0.24 per share, which was better than the Zacks Consensus Estimate of a loss of $0.26, and compared to a loss of $0.03 per share a year ago, indicating an earnings surprise of 7.69% [1] - The company posted revenues of $897.06 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.49%, and showing an increase from year-ago revenues of $718.16 million [2] - Viking has outperformed the S&P 500, with shares up about 6.9% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $1.83 billion, and for the current fiscal year, it is $2.36 on revenues of $6.28 billion [7] - The estimate revisions trend for Viking is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Transportation - Truck industry, to which Viking belongs, is currently in the bottom 2% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 24.9% year over year to almost $900 million, driven by increased capacity, higher occupancy, and higher revenue per passenger cruise day (PCD) [19][20] - Adjusted gross margin rose by 23.8% year over year to $613 million, resulting in a net yield of $544, which is 7.1% higher than Q1 2024 [19][20] - Adjusted EBITDA for Q1 totaled $73 million, improving by over $77 million compared to the same quarter last year, marking a significant year-over-year increase [20] Business Line Data and Key Metrics Changes - **River Segment**: Capacity PCDs increased by 22.3% year over year, with occupancy at 93.9%, about 180 basis points higher than last year. Adjusted gross margin grew by 21.5% year over year, while net yield was $593, down 2.7% year over year [21] - **Ocean Segment**: Capacity PCDs increased by 10.4% year over year, with occupancy at 94.4%. Adjusted gross margin increased by 25.3% year over year to $395 million, and net yield was $499, up 13.6% compared to the previous year [22] Market Data and Key Metrics Changes - Advanced bookings for 2025 reached $5.5 billion, which is 21% higher than the previous year at the same point in time, with 92% of capacity booked [26] - For 2026, 37% of capacity is already booked with $2.7 billion in advanced bookings, which is 11% higher than the 2025 season at the same point in time [27] Company Strategy and Development Direction - The company focuses on disciplined execution of its growth strategy, emphasizing direct marketing to stimulate demand without resorting to pricing promotions [12][56] - The company is committed to expanding its fleet, with plans for additional ocean and river vessels, reflecting a strategic expansion across both offerings [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and consumer demand, noting that bookings have remained strong despite macroeconomic uncertainties [9][15] - The company highlighted a strong balance sheet with a net debt to EBITDA ratio of two times, providing stability and flexibility for future investments [14][23] Other Important Information - The company announced the construction of the Viking Libra, the world's first hydrogen-powered cruise ship, set for delivery next year [16][17] - The company has a total cash and cash equivalents of $2.8 billion as of March 31, 2025, with an undrawn revolver facility of $375 million [23] Q&A Session Summary Question: Pricing and Promotions - The company has not turned to pricing promotions for future seasons, indicating that pricing dynamics are nuanced and dependent on inventory sold [38][39] Question: Booking Window Changes - Management confirmed that there have been no material changes to the booking window, which remains similar to prior years [40][41] Question: Diverging Net Yield Growth - Management explained that the ocean segment typically operates year-round, while the river segment has a seasonal nature, affecting yield comparisons [46][48] Question: Consumer Demand and Marketing Strategy - Management emphasized that direct consumer engagement is the primary strategy to stimulate demand, rather than adjusting pricing [55][56] Question: Geopolitical Situations and Capacity - The company is prepared to reactivate vessels currently laid up in Russia if geopolitical conditions improve, which would contribute positively to EBITDA [103] Question: Cost Management - The company focuses on efficient vessel design and strong internal discipline to manage costs, aiming to enhance margins while maintaining product quality [115][117]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 24.9% year over year to almost $900 million, driven by increased capacity, higher occupancy, and higher revenue per passenger cruise day (PCD) [17][18] - Adjusted gross margin rose by 23.8% year over year to $613 million, resulting in a net yield of $544, which is 7.1% higher than Q1 2024 [18][19] - Adjusted EBITDA for Q1 totaled $73 million, improving by over $77 million compared to the same quarter last year, marking a significant year-over-year increase [19] Business Line Data and Key Metrics Changes - **River Segment**: Capacity PCDs increased by 22.3% year over year, with occupancy at 93.9%, about 180 basis points higher than last year. Adjusted gross margin grew by 21.5% year over year, while net yield was $593, down 2.7% year over year [20] - **Ocean Segment**: Capacity PCDs increased by 10.4% year over year, with occupancy at 94.4%, in line with last year. Adjusted gross margin increased by 25.3% year over year to $395 million, and net yield was $499, up 13.6% compared to the previous year [21] Market Data and Key Metrics Changes - Advanced bookings for 2025 reached $5.5 billion, which is 21% higher than the previous year at the same point in time, with 92% of capacity booked [25] - For 2026, 37% of capacity is already booked with $2.7 billion in advanced bookings, which is 11% higher than the 2025 season at the same point in time [26] Company Strategy and Development Direction - The company focuses on a disciplined growth strategy, emphasizing direct marketing to stimulate demand without resorting to pricing promotions [11][39] - The introduction of the Viking Libra, the world's first hydrogen-powered cruise ship, reflects the company's commitment to sustainability and innovation in the industry [14][15] - The company maintains a strong balance sheet with a net debt to EBITDA ratio of two times, allowing for stability and flexibility in navigating market volatility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and consumer demand, noting that bookings have remained strong despite macroeconomic uncertainties [8][14] - The company anticipates mid-single-digit yield growth alongside planned capacity increases, supported by a loyal customer base that prioritizes travel experiences [39][68] Other Important Information - The company has a total cash and cash equivalents of $2.8 billion as of March 31, 2025, with an undrawn revolver facility of $375 million [22] - Committed capital expenditures for 2025 are expected to be about $850 million, with $1.1 billion projected for 2026 [23] Q&A Session Summary Question: Pricing and Promotions - Management confirmed that they have not turned to pricing promotions for future seasons, indicating that pricing dynamics are nuanced and dependent on inventory sold [38][39] Question: Booking Window Changes - Management stated that there have been no material changes to the booking window, which remains similar to prior years [41] Question: Diverging Net Yield Growth - Management explained that the ocean segment typically operates year-round, while the river segment has a seasonal nature, affecting yield comparisons [45][48] Question: Consumer Demand Signals - Management indicated that booking pace is closely monitored, and they would engage consumers directly to stimulate demand if necessary [54][56] Question: Impact of Geopolitical Situations - Management confirmed that they are ready to reactivate ships in Russia and Ukraine if geopolitical conditions improve, which would contribute positively to EBITDA [104][105] Question: Cost Management - Management emphasized a strong internal discipline in cost management, focusing on enhancing margins while ensuring product quality [118][119]

Economic Overview - Low to middle-income consumers are reducing spending to pay down credit card debt, while affluent consumers continue to spend selectively [1][2] - The economy is divided, with strong revenue and earnings growth reported by many companies despite market uncertainty [2] Company Analysis: Tapestry Inc. (TPR) - Tapestry is known for luxury accessories and lifestyle products, with a current stock price of $70.65 and a price target of $78.00, indicating a 12% upside potential [3][5] - The company reported record earnings per share of $2 in Q2 FY2025 and achieved a net paydown yield of 38% over the last 12 months [4][5] - Analysts have a Moderate Buy rating on TPR, with some price targets adjusted but remaining above the consensus price [5][6] Company Analysis: On Holding AG (ONON) - On Holding specializes in high-end footwear and apparel, with a current stock price of $48.11 and a price target of $58.77, suggesting a 23% increase potential [7][10] - The company uses over 30% recycled or renewable materials in its products, appealing to younger consumers [8] - Despite a recent double beat in earnings, ONON stock is down over 13% in 2025 due to concerns over exposure to China amid tariff issues [9][10] Company Analysis: Viking Holdings Ltd. (VIK) - Viking Holdings, a newcomer in the luxury cruise market, has a current stock price of $41.02 and a price target of $46.89, indicating potential growth [12] - The company is 88% booked for 2025 and does not anticipate cancellations due to market weakness, suggesting resilience in the cruise line industry [14] - Despite volatility typical of newly public companies, VIK stock has increased nearly 50% since its launch [14]

Core Viewpoint - Viking Holdings (VIK) shares have increased by approximately 2.9% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Estimates Movement - Estimates revision for Viking has remained flat over the past month, indicating no significant changes in analyst expectations [2] VGM Scores - Viking currently holds an average Growth Score of C, a Momentum Score of D, and a Value Score of D, placing it in the bottom 40% for the value investment strategy. The overall aggregate VGM Score for the stock is D, which is relevant for investors not focused on a single strategy [3] Outlook - Viking has a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

Core Viewpoint - Viking Holdings (VIK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Viking for the fiscal year ending December 2025 is projected at $2.37 per share, reflecting a 27.4% increase from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Viking has risen by 4.4%, indicating a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors to gauge stock performance [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting Viking's strong position in terms of earnings estimate revisions [9][10]. Market Impact - The correlation between earnings estimate revisions and stock price movements suggests that Viking's rating upgrade could lead to favorable price movements in the near term [4][10]. - Institutional investors often react to changes in earnings estimates, which can lead to significant stock price fluctuations based on their buying or selling activities [4].

Group 1 - The article discusses Viking Holdings (NYSE: VIK) and previously held a buy rating due to solid underlying demand trends and robust forward-looking metrics [1] - The demand outlook and competitive environment for Viking Holdings have deteriorated, leading to a reassessment of the investment thesis [1] Group 2 - The author emphasizes a diverse investment background, incorporating fundamental, technical, and momentum investing strategies to refine the investment process [1]

Viking Holdings (VIK) has been beaten down lately with too much selling pressure. While the stock has lost 25.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator tha ...

Goldman Sachs analyst Lizzie Dove reiterated a Neutral rating on the shares of Viking Holdings Ltd VIK and raised the price forecast from $49.00 to $51.00.VIK experienced a slight slowdown in bookings during February, following a strong fourth-quarter performance and record bookings in January.Despite this, the company is 88% booked for 2025, with inventory for the year almost sold out. While February’s softness may reflect a pull-forward in spending during the holiday season, the luxury market exposure pro ...