Cruise Operator Viking Swings To Profit, Tops Estimates

Investopedia
20 Nov 2024

Key Takeaways

  • Cruise operator Viking Holdings posted third-quarter revenue and net income that beat analysts' expectations.
  • The company swung to a profit of nearly $375 million from a loss of $1.24 billion last year.
  • JPMorgan analysts raised their price target for the company based on booking data.

Viking Holdings (VIK) on Tuesday posted third-quarter revenue and net income that beat analysts' expectations. 

The cruise operator posted revenue of $1.68 billion, above the consensus estimate of analysts polled by Visible Alpha. Viking swung to a profit of $374.8 million, or $0.86 per share, from a loss of $1.24 billion, or $3.02 per share, also beating projections.

However, Viking reported an occupancy rate of 94.0% for the third quarter, down from 94.9% a year ago and below the expected 95.4%.

JPMorgan Analysts Bullish on Bookings

Still, analysts at JPMorgan affirmed an "overweight" rating for Viking and raised their price target to $50 from $42. The firm noted that 2025 "booking curves point to 70% of capacity already sold at +7% higher pricing." 

Viking shares slipped 1% to $44.93 in afternoon trading. They are up 72% since their May 1 initial public offering (IPO).

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