Viking Holdings (VIK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 1 ...

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) reported second-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][3][9] Financial Performance - Adjusted earnings per share (EPS) for Q2 were 51 cents, slightly below the consensus estimate of 52 cents, compared to 39 cents in the prior-year quarter [3] - Quarterly revenues reached $2.52 billion, missing the consensus mark of $2.55 billion, but reflecting a 6.1% year-over-year increase [3] - Passenger ticket revenues were $1.7 billion, up from $1.6 billion in the prior-year quarter, while onboard and other revenues increased to $808.5 million from $770.4 million [4] Expenses and Operating Results - Total cruise operating expenses rose 0.1% year-over-year to $1.45 billion, below the anticipated $1.51 billion [5] - Gross cruise costs per Capacity Day were $305.65, slightly higher than $305.38 reported in the prior-year period [5] - Net interest expenses were $236.8 million, an increase from $178.5 million in the year-ago quarter [6] Balance Sheet - As of June 30, 2025, cash and cash equivalents stood at $184 million, down from $190.8 million at the end of 2024, while long-term debt increased to $12.6 billion from $11.8 billion [7] Booking Trends - The company reported strong booking trends for third-quarter long-haul and extended European itineraries, with booking volumes surpassing historical levels [2][8] - Second-quarter 2025 occupancy was 103.9%, consistent with guidance, and advance ticket sales reached $4 billion compared to $3.9 billion in the prior-year quarter [8] Guidance - For Q3 2025, NCLH anticipates occupancy of approximately 105.5% and adjusted EPS of nearly $1.14, with expected adjusted EBITDA of about $1 billion [10] - For the full year 2025, the company expects occupancy of approximately 103%, with adjusted EPS projected at $2.05 and adjusted EBITDA expected to be nearly $2.72 billion [11]

Financial Performance Highlights - Q2 2025 Adjusted EBITDA reached $694 million, exceeding guidance of approximately $670 million[7] - Q2 2025 Adjusted EPS was $051, meeting guidance despite an $008 impact from foreign exchange[7] - Net Yield increased by 31% compared to 2024, surpassing guidance by 60 bps[7] - Adjusted Net Cruise Cost Excluding Fuel per Capacity Day was $163, flat compared to 2024 and better than the guidance of $165[7] - The company expects to deliver over $200 million in cumulative total savings by the end of 2025 and is confident in achieving a $300 million+ target through 2026[30] Growth and Capacity - The company anticipates a net capacity growth with a 4% CAGR[22] - The company has 7 new ships on order, representing approximately 31,250 berths[22] - Oceania Cruises has 4 new ships on order, representing approximately 5,560 berths[22] - Regent Seven Seas has 2 new ships on order, representing approximately 1,650 berths[22] Financial Targets and Leverage - The company targets an Adjusted Operational EBITDA Margin of approximately 39% and Adjusted EPS of approximately $245 for 2026[35] - The company aims to reduce Net Leverage to the mid-4x range[35] - Q2 2025 Net Leverage decreased to 53x and is expected to end 2025 at approximately 52x[7,68] Sustainability - The company aims for a 10% reduction in GHG intensity from the 2019 baseline[36] - By the end of 2024, 59% of the company's fleet was equipped with shore power technology[45] - 47% of the company's fleet was tested with biofuel blends, exceeding the 40% goal by 2024[52]

Core Viewpoint - Royal Caribbean Cruises Ltd. reported second-quarter earnings that exceeded EPS expectations but fell short on revenue, leading to a decline in stock price. The company's earnings guidance for the upcoming quarter and full year also disappointed investors, contributing to the stock's drop. Financial Performance - The company reported EPS of $4.38, beating expectations of $4.04 by 34 cents, and showing a 36% increase year-over-year [1] - Revenue for the quarter was $4.54 billion, slightly below the expected $4.55 billion [2] - For the upcoming quarter, Royal Caribbean forecasts EPS between $5.55 and $5.65, lower than analysts' estimates of $5.84 [2] - Full-year EPS guidance is between $15.41 and $15.55, which is below the consensus estimate of $15.46 [3] Stock Performance - RCL stock is currently trading at $337.37, down 4.16% [2] - The stock has increased over 44% in 2025, but the recent earnings report led to a pullback [3] - The consensus price target for RCL stock is $311.05, indicating a potential downside of 11.64% from the current price [6] Valuation Metrics - RCL stock has a P/E ratio of over 27x, significantly higher than its historical average and above the sector average for consumer discretionary stocks [4] - The stock's P/E ratio is about twice that of Norwegian Cruise Line Holdings Ltd. and Carnival Corp. [4] Debt Management - Royal Caribbean's debt-to-equity ratio is 2.21, which is lower than its peers, indicating a relatively strong position in terms of leverage [7] - The company repaid $1.4 billion in debt last quarter and plans to pay $3.3 billion for the full year, which may impact short-term earnings but is seen as a positive long-term strategy [8] Market Sentiment - Short interest in RCL stock has increased over 20% in the last month, indicating growing bearish sentiment among investors [5] - The stock has dipped below its 50-day simple moving average, suggesting a strong negative market reaction [9] - Despite bearish momentum, there are indications that the sell-off may be overdone, with potential support levels between $340 and $350 [10]

Core Viewpoint - Analysts project that Royal Caribbean (RCL) will report quarterly earnings of $4.10 per share, reflecting a year-over-year increase of 27.7%, with revenues expected to reach $4.55 billion, a 10.7% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 1.6%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Revenues- Onboard and other' to be $1.33 billion, marking a 9% increase from the previous year [5]. - 'Revenues- Passenger ticket' is projected to reach $3.21 billion, reflecting an 11.1% increase from the year-ago quarter [5]. Operational Metrics - The estimated 'Available Passenger Cruise Days (APCD)' is projected at 12,923 days, up from 12,233 days in the same quarter last year [6]. - The 'Occupancy Rate' is expected to be 109.6%, compared to 108.2% a year ago [6]. - 'Passenger Cruise Days' are anticipated to reach 14,168 days, an increase from 13,230 days in the previous year [6]. Cost Projections - 'Net Cruise Costs Excluding Fuel per APCD' is expected to be $129.25, up from $123.65 in the same quarter last year [7]. - 'Net Cruise Costs per APCD' is projected at $151.33, compared to $146.70 in the same quarter last year [7]. Passenger Estimates - The consensus among analysts is that 'Passengers Carried' will reach 2.34 million, an increase from 2.04 million a year ago [8]. Stock Performance - Shares of Royal Caribbean have increased by 24.1% in the past month, outperforming the Zacks S&P 500 composite, which rose by 5.7% [8].

Core Insights - Carnival Corporation & plc (CCL) shares have increased by 20.3% in the past month, outperforming the Zacks Leisure and Recreation Services industry's growth of 11.8% and the S&P 500's growth of 3.7% [1][2] Financial Performance - Carnival has achieved record-breaking earnings, with EBITDA rising 26% year over year and net income more than tripling [6] - The company has met its 2026 financial targets 18 months ahead of schedule, indicating strong commercial execution and operational discipline [6] - For fiscal 2025, Carnival raised its adjusted EBITDA forecast to approximately $6.9 billion, up from $6.7 billion, reflecting over 10% year-over-year growth [13] Demand and Pricing - Net yields increased by 6.5% in the fiscal second quarter, driven by strong ticket pricing and onboard spending [7] - 93% of 2025 capacity is already booked at historically high prices, indicating strong demand and pricing power [8] Strategic Developments - The anticipated July debut of Celebration Key is expected to generate strong consumer interest and command pricing premiums [10] - Carnival is modernizing its fleet with the AIDA Evolution program and launching new ships with family-friendly amenities [11] Analyst Sentiment - Analysts maintain a positive outlook on Carnival, with an average price target of $30.04, suggesting a potential upside of 4.8% from the last closing price [23] - The company holds an average brokerage recommendation of 1.60, indicating a favorable outlook [24] Stock Valuation - Carnival stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.40X, below the industry average of 19.79X, presenting an attractive investment opportunity [17]

Group 1: Carnival Corporation - Carnival is the leading global cruise operator, recovering from extreme debt and showing strong business performance with stock still 60% off its highs [4] - The stock price has risen 64% over the past year, trading at a price-to-sales ratio of 1.5 and a forward P/E ratio under 13, indicating potential for further gains [5] - In Q2 of fiscal 2025, Carnival reported revenue of $6.3 billion, a 9% year-over-year increase, with operating income rising from $560 million to $934 million [6] - The company had record deposits of $8.5 billion and is maintaining high bookings, alleviating concerns about demand drying up [7] - Carnival ended the quarter with $27 billion in total debt, having refinanced $7 billion at more favorable rates, and is close to achieving investment-grade credit ratings [8] - Carnival stock may appeal to investors willing to take on some risk, as the company is expected to bounce back and reward shareholders [9] Group 2: Williams-Sonoma - Williams-Sonoma targets the upscale housewares market and has faced challenges due to macroeconomic pressures, particularly in the sluggish real estate sector [11] - The company reported a 3.4% year-over-year increase in comparable brand revenue and an operating margin of 16.8%, exceeding guidance [12] - Williams-Sonoma has a diversified supplier base, with only 23% of its products sourced from China, positioning it well to handle tariff changes [12] - The company emphasizes a "digital first, not digital only" strategy, with e-commerce accounting for 66% of total sales in Q1 of fiscal 2025, tapping into a $830 billion addressable market [14] - Despite a decline of 8% in stock price this year, investor enthusiasm is returning, and the stock offers a dividend yield of 1.4% [15] - The stock trades at a forward P/E ratio of 19, presenting a potential entry point for investors [15]

Core Insights - Planet Fitness, Inc. (PLNT) reported lower-than-expected first-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][4] - The company is facing macroeconomic volatility, increased costs, and expenses, particularly in SG&A and club operations [1][2] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 59 cents, missing the consensus estimate of 62 cents by 4.8%, while the prior-year quarter reported adjusted EPS of 53 cents [4] - Quarterly revenues were $276.7 million, lagging the consensus mark of $282 million by 1.7%, but rose 11.5% year-over-year due to new club openings and membership growth [4] - Adjusted EBITDA was $117 million, up 10% from $106.3 million reported in the year-ago quarter [5] Segment Performance - Franchise segment revenues rose 10.7% year-over-year to $115.2 million, with adjusted EBITDA of $84.9 million, up from $76.1 million [6] - Corporate-owned clubs generated revenues of $133.7 million, up 9.2% year-over-year, with adjusted EBITDA totaling $45.8 million, an increase from $42.4 million [7] - Equipment segment revenues totaled $27.8 million, up 28.7% year-over-year, with adjusted EBITDA rising to $7.4 million from $4.8 million [8] Cash and Debt Position - As of March 31, 2025, Planet Fitness had cash and cash equivalents of $343.9 million, up from $293.2 million at the end of 2024, while long-term debt decreased slightly to $2.14 billion [9] 2025 Outlook - For 2025, the company expects approximately 130-140 new equipment placements and 160-170 new club openings, with same-club sales growth projected in the 5-6% range [10] - Revenues are anticipated to increase approximately 10% from 2024 levels, with adjusted EBITDA and net income expected to grow around 10% and 8-9%, respectively [11] - Capital expenditures are now projected to increase approximately 20%, a revision from the previously expected 25% increase [12]

Core Insights - Norwegian Cruise Line Holdings Ltd. has executed long-term charter agreements for four vessels across its three brands, indicating a strategic approach to fleet optimization and market expansion [1][4] - The company is committed to growing its fleet with 12 ships on order through 2036, which will enhance guest experiences and maintain its competitive edge in the cruise industry [1][2] Fleet Optimization - The agreements include charters for Norwegian Sky and Norwegian Sun to Cordelia Cruises in India, with anticipated start dates in 2026 and 2027 [4] - Regent Seven Seas Cruises' Seven Seas Navigator and Oceania Cruises' Insignia will be chartered to Crescent Seas, also starting in 2026 and 2027 [4] Future Growth Plans - Norwegian Cruise Line Holdings plans to add 12 additional ships, which will increase its fleet capacity by approximately 37,500 berths [2] - The company operates a combined fleet of 33 ships with around 70,050 berths, offering itineraries to approximately 700 destinations worldwide [2]