Why Is Viking (VIK) Up 5.8% Since Last Earnings Report?

Core Viewpoint - Viking Holdings reported second-quarter 2025 earnings that met consensus estimates for earnings per share while revenues exceeded expectations, indicating strong operational performance and growth potential [2][3]. Financial Performance - Quarterly earnings were 99 cents per share, matching the Zacks Consensus Estimate and showing improvement from the previous year [2]. - Total revenues reached $1.88 billion, surpassing the Zacks Consensus Estimate of $1.83 billion, and reflecting an 18.5% year-over-year increase [3]. - Adjusted EBITDA was $632.9 million, growing 28.5% year over year, driven by increased Capacity Passenger Cruise Days (PCDs), higher occupancy, and higher revenue per PCD [3]. Operational Metrics - Capacity PCDs increased by 8.8% year over year due to fleet expansion, which included three additional river vessels and one ocean ship [4]. - The occupancy rate for the second quarter of 2025 was reported at 95.6% [4]. Cost Structure - Vessel operating expenses rose by 14.8% year over year, with expenses excluding fuel increasing by 17.7%, attributed to fleet size growth [5]. - As of June 30, 2025, Viking Holdings had $2.6 billion in cash and cash equivalents, alongside an undrawn revolver facility of $375 million, with a net debt of $3.22 billion [5]. Market Sentiment - Recent estimates for the stock have shown a downward trend, indicating potential concerns among investors [6][8]. - Viking Holdings currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the upcoming months [8]. Investment Scores - The company has a subpar Growth Score of D and a Momentum Score of F, while holding a value score of C, placing it in the middle 20% for value investors [7]. - The aggregate VGM Score for Viking Holdings is D, indicating a lack of strong performance across multiple investment strategies [7].