Company Performance - Viking Holdings (VIK) reported a loss of 24 cents per share in Q1 2025, which was better than the Zacks Consensus Estimate of a loss of 26 cents per share, compared to a loss of 3 cents per share in Q1 2024 [1] - Total revenues reached $897.1 million, exceeding the Zacks Consensus Estimate by 4.49% and showing a year-over-year increase of 24.9%, driven by increased Capacity Passenger Cruise Days (PCDs) and higher revenue per PCD [1] - Adjusted EBITDA for the quarter was $72.8 million, an increase of $77.3 million from Q1 2024, attributed to the growth in capacity of PCDs and higher revenue per PCD [2] Capacity and Demand - Capacity PCDs improved by 14.9% year-over-year due to the addition of two new river vessels and a new ocean ship delivered in 2024 [2] - The company experienced a 7.1% growth in Net Yield, indicating strong demand for travel experiences among its core demographic, with 92% of capacity already booked for the 2025 season [3] Financial Health - As of March 31, 2025, VIK had $2.8 billion in cash and cash equivalents, along with an undrawn revolver facility of $375 million, while the company's net debt stood at $2.9 billion [4] - Vessel operating expenses increased by 10.2% year-over-year, with expenses excluding fuel rising by 12.2%, reflecting the growth in fleet size [3] Industry Context - Norwegian Cruise Line Holdings Ltd. (NCLH) reported Q1 2025 results that missed the Zacks Consensus Estimate, with both earnings and revenues declining year-over-year [6] - Caesars Entertainment, Inc. (CZR) had mixed results in Q1 2025, with earnings missing estimates but revenues surpassing them, showing year-over-year improvement [8]

Company Overview - Viking Holdings Ltd went public in May 2024, raising $1.54 billion at approximately $24 per share [11] - The company focuses on passenger shipping and other forms of passenger transport, targeting English-speaking travelers aged over 55 years [11] - Viking's cruises do not allow guests under 18 years old [11] Financial Performance - The new investment into Viking Holdings was $245.5 million, accounting for 16% of the total funds raised [11] - The Zacks Consensus Estimate for fiscal 2025 has increased by $0.02 to $2.39 per share [12] - Viking Holdings has an average earnings surprise of 12.5% [12] Investment Ratings - Viking Holdings is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B [12] - The company has a Momentum Style Score of A, with shares up 5.5% over the past four weeks [12] - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Viking Holdings is recommended for investors' consideration [13]

Core Viewpoint - Stifel analyst Steven Wieczynski maintains a Buy rating on Viking Holdings Ltd, lowering the price forecast from $52 to $50 due to concerns over early 2026 pricing trends and macroeconomic uncertainty [1]. Financial Performance - Viking reported first-quarter total revenue of $897.1 million, reflecting a 24.9% increase compared to the same period in 2024 [1]. - The company aims for mid-single-digit yield growth for 2026, although the outcome remains uncertain [2]. Booking and Demand Insights - Viking's current 2026 booking levels are approximately 37% of inventory sold, which is ahead of forecasts [3]. - The company is not heavily relying on promotions to drive demand, indicating a strong position due to a longer booking window and a large customer base [3]. - Viking's response to booking strength concerns was reassuring, clarifying that FY25 pricing appeared inflated compared to FY24 due to the absence of a lower-yielding world cruise [4]. Marketing and Growth Potential - Viking has the capacity to drive demand through marketing without significantly increasing SG&A as a percentage of revenue, thanks to its direct marketing model [5]. - The company is projected to achieve strong EBITDA growth of approximately 18% annually through 2027 [5]. Stock Performance - Viking shares are trading lower by 2.62% to $43.59 as of the latest check [5].

Company Overview - Viking Holdings Inc. is a new entrant in the cruise line industry, known for its longships and child-free cruises, having completed its IPO in April 2024 [1] - The company reported its first-quarter earnings for 2025, indicating maturity and potential for future growth despite a premium valuation [1] Financial Performance - Viking achieved a revenue of $897.06 million, exceeding analysts' estimates of $841.18 million by over 6% and showing a year-over-year increase of 24.9% [2] - The company reported a loss of $0.24 per share, which was better than the expected loss of $0.27 and an improvement from the $0.74 loss reported in May 2024 [3] Demand and Capacity - Despite the first quarter being historically weak for cruise lines, Viking's capacity passenger cruise days increased by 14.9% with a 94.5% occupancy rate for the quarter [2] - The company has booked 92% of its capacity for the current season, although 2026 bookings are at 37%, slightly below last year's 39% [7] Fleet Expansion - Viking announced the delivery of its newest river ship, the Viking Thoth, in October, and plans to expand its Nile River fleet to 12 ships by 2027 [8] - The company is also set to take delivery of one ocean ship and nine river vessels in 2025, indicating a bullish outlook with favorable demand trends [9] Stock Performance - Viking's stock forecast shows a 12-month price target of $46.89, representing a 6.85% upside based on 18 analyst ratings [4] - The stock experienced a drop of nearly 7% post-earnings report but recovered some losses, suggesting potential support levels [11] Market Position - The cruise line targets a demographic with disposable income, focusing on a non-party atmosphere with no casinos and no passengers under 18 [6] - Despite concerns about passenger numbers being approximately 88,000 below estimates, there is no evidence of waning demand [7]

Market Overview - Pre-market futures are flat following a sixth-straight up-day on the S&P 500, with market sentiment buoyed by positive trade deal expectations [1] - The Dow is up +0.03%, while the S&P 500 is down -0.17%, and the tech-heavy Nasdaq has grown nearly +20% recently but is down -0.28% in early trading [2] Economic Indicators - U.S. Leading Economic Indicators (LEI) dropped -1.0% to 99.4 points in April, marking the first time below 100 since September of last year [3] - This decline represents the fifth consecutive drop in LEI, which had previously shown a hopeful turn around the 2024 election [3] Home Depot Earnings - Home Depot reported mixed Q1 results with earnings of $3.56 per share, missing the Zacks consensus by 3 cents, while revenues were $39.86 billion, up +9.4% year over year [5] - Shares of Home Depot are up +2% in pre-market trading, recovering most of year-to-date losses [5] Viking Holdings Earnings - Viking Holdings reported Q1 results with negative earnings of -$0.24 per share, which was 2 cents better than expected, and revenues of $897.06 million, exceeding estimates by +4.49% [6] - Despite outperforming expectations, shares are down -5% in early trading [6] Upcoming Earnings Reports - Palo Alto Networks is expected to report negative -8% earnings growth with revenues projected to increase by +14.67% [7] - Toll Brothers is anticipated to report fiscal Q2 numbers with expected declines of -15.3% on earnings and -11.9% on revenues, although it may achieve its third earnings beat in the last four quarters [8]

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]