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].

Core Viewpoint - Carnival Corp. has successfully rebounded from the COVID-19 pandemic, achieving record revenues in Q1 2025 and showing potential for continued growth in the coming years [2][3]. Financial Performance - Carnival reported record revenue and customer deposits in Q1 2025, indicating strong business momentum [3]. - The company earned $1.44 per share in 2024, with analysts estimating earnings of $1.86 per share in 2025, $2.14 in 2026, and $2.93 in 2027 [8]. - The stock has risen over 50% in the past year but still trades nearly 70% below its all-time high [7]. Debt Management - Carnival has reduced its long-term debt from $35 billion in 2023 to approximately $27 billion [5]. - The company is refinancing its debt to lower interest expenses, saving about $100 million in expected interest costs for 2025 [6]. Valuation and Future Projections - With a P/E ratio of 16, Carnival's valuation is below that of the S&P 500, which may be justified due to its debt and capital-intensive nature [8]. - If Carnival maintains its P/E ratio and meets earnings estimates, the stock could potentially reach approximately $47 in three years, implying a doubling of its current price [9]. Market Conditions - Consumer sentiment is currently low, with household credit card debt at an all-time high and federal student loan payments resuming, which could impact discretionary spending on vacations [12].

Investing in growth stocks is a great way to grow your portfolio in the long run. But it can be difficult to predict which ones will take off in value and which one's won't. And that's why it might make sense to invest in multiple growth stocks, to ensure you aren't placing all your hopes on just a single company. Three stocks that possess a lot of long-term potential and are cheap buys right now are Carnival (CCL -2.14%), AstraZeneca (AZN 0.33%), and Block (XYZ -1.70%). At less than $100 per share, here's ...

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]

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]

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]

Core Viewpoint - Carnival Corporation & plc has experienced a significant stock surge of 28.7% over the past month, outperforming both the Zacks Leisure and Recreation Services industry and the S&P 500 [1][2]. Group 1: Stock Performance and Market Sentiment - The recent stock surge is attributed to strong earnings performance, improved macro sentiment, and growing institutional interest, particularly amid easing trade tensions between the U.S. and China [2][3]. - Investor optimism is driven by expectations that tariff reductions will alleviate cost pressures and boost consumer spending on leisure services, benefiting cruise companies [3]. Group 2: Consumer Demand and Booking Strength - Carnival is capitalizing on increasing consumer demand for experience-based vacations, with cruise travel offering a compelling value proposition compared to land-based alternatives [6]. - The company has over 80% of its 2025 bookings already secured at higher prices, indicating strong booking momentum and pricing power [4][6]. Group 3: Marketing and Operational Strategy - Carnival's marketing initiatives, including high-impact campaigns during major global events, have significantly enhanced brand visibility and consumer interest [7]. - Strategic operational moves, such as optimizing the fleet and focusing on high-efficiency ships, are expected to create long-term value and reduce operating costs [10][11]. Group 4: Financial Guidance and Earnings Outlook - Carnival has upgraded its full-year 2025 guidance, projecting adjusted EBITDA of approximately $6.7 billion and adjusted net income nearing $2.5 billion, reflecting a more than 30% increase from 2024 [14][15]. - Analysts have revised EPS estimates for 2025 upward, indicating strong confidence in the stock's near-term prospects, with a projected 30.3% jump in earnings [16]. Group 5: Valuation and Analyst Expectations - Carnival stock is currently trading at a forward P/E multiple of 11.71X, below the industry average of 18.52X, presenting an attractive investment opportunity [18]. - Analysts maintain an optimistic outlook, with an average price target of $27.67, suggesting a potential upside of 20.3% from the last closing price [24]. Group 6: Growth Potential and Strategic Focus - The company is shifting its focus from survival to growth, emphasizing revenue maximization and strategic deployment of ships to high-demand markets [11][12]. - Continued strength in North American and European markets, along with expansion into less penetrated regions like Asia, is expected to drive further growth [13].

Operational Highlights - Occupancy in April was 69%, an increase of 4% compared to April 2024 [3] - Average Cabin Revenue (ACR) rose by nearly 30% year-over-year [3] - Total ticket revenue grew by over 20% year-over-year, despite reduced capacity due to Havila Castor being in dry-dock [3] Booking Position - As of the end of April, 60% of 2025 capacity is booked, representing about 80% of the full-year targeted cabin nights [3] - Occupancy for Q2 2025 is at 72%, compared to a final 69% in Q2 last year [3] - 21% of 2026 capacity is already booked at significantly higher average prices (ACR) than in 2025 [3] Revenue Growth and Margin Expansion - Forward bookings indicate continued revenue growth and EBITDA margin expansion into 2026 [3] - Booking distribution is more balanced across north and south routes than last year, allowing for further sales closer to departure [3] - Full year occupancy for 2025 is expected to trend higher moving forward due to Q4 campaigns starting about three months later [3]

Company Performance - Snail, Inc. (SNAL) reported first-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although the bottom line declined compared to the prior-year quarter [1] - The company reported an adjusted loss per share of 6 cents, which was narrower than the consensus estimate of a loss of 11 cents, and compared to an adjusted loss of 5 cents in the prior-year quarter [4] - Quarterly revenues reached $20.1 million, surpassing the consensus mark of $18 million by 11.7%, and increased by 42.5% from $14.1 million in the year-ago quarter [5] User Engagement and Sales - Daily active users on Steam and Epic platforms increased by 16% year over year to 243,000, driven by new content releases for the ARK franchise [2] - Bookings totaled $22.2 million, up from $19.6 million in the prior-year quarter, attributed to the release of ARK: Survival Ascended DLC and previous launches [6] Financial Highlights - Gross profit for the quarter was $5.8 million, compared to $2.1 million in the prior-year quarter, while the net loss was $1.9 million, slightly higher than the $1.8 million loss reported in the prior-year quarter [7] - EBITDA for the quarter was a loss of $3.2 million, compared to a loss of $1.9 million in the prior-year period, influenced by various factors including an increase in income tax benefit [8] Strategic Initiatives - The company signed a memorandum of understanding with Mega Matrix to co-develop at least 10 short dramas, and soft-launched Salty TV to diversify content offerings beyond gaming [3] - Snail aims to expand its global footprint and deliver innovative cross-platform experiences across gaming and entertainment throughout 2025 [3] Balance Sheet - As of March 31, 2025, cash and cash equivalents amounted to $9.3 million, an increase from $7.3 million as of December 31, 2024 [9]