OneSpaWorld (OSW, Financial) has announced its first-quarter revenue figures, revealing a total of $219.6 million. This result surpasses the market consensus of $218.94 million. The company's Executive Chairman and CEO, Leonard Fluxman, highlighted that these results align with the higher end of their anticipated guidance, and they have reaffirmed their fiscal outlook for 2025.
Fluxman attributed the strong performance to strategic investments in partnerships with cruise lines and destination resorts, as well as ongoing innovations in guest experiences. The company's focus on boosting productivity and profitability led to improved key operating metrics during the quarter.
Notably, OSW has expanded its fleet with the addition of the Norwegian Cruise Lines' Prima Plus Class ship, Norwegian Aqua(TM). In line with their growth strategy, they plan to launch health and wellness centers on eight new ships starting voyages this year.
Additionally, post-quarter developments include a new agreement to manage health and wellness facilities on 11 ships belonging to P&O and Cunard, further strengthening their collaboration with these brands.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for OneSpaWorld Holdings Ltd (OSW, Financial) is $22.00 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an upside of 24.72% from the current price of $17.64. More detailed estimate data can be found on the OneSpaWorld Holdings Ltd (OSW) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, OneSpaWorld Holdings Ltd's (OSW, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for OneSpaWorld Holdings Ltd (OSW, Financial) in one year is $18.71, suggesting a upside of 6.07% from the current price of $17.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the OneSpaWorld Holdings Ltd (OSW) Summary page.
OSW Key Business Developments
Release Date: February 19, 2025
- Total Revenue (Q4 2024): $217.2 million, up 11% from $194.8 million in Q4 2023.
- Total Revenue (Fiscal Year 2024): $895 million, up 13% from $794 million in fiscal year 2023.
- Income from Operations (Q4 2024): $17.2 million, up 37% from $12.6 million in Q4 2023.
- Income from Operations (Fiscal Year 2024): $78.1 million, up 44% from $54.2 million in fiscal year 2023.
- Adjusted EBITDA (Q4 2024): $26.7 million, up 14% from $23.4 million in Q4 2023.
- Adjusted EBITDA (Fiscal Year 2024): $112.1 million, up 26% from $89.2 million in fiscal year 2023.
- Net Income (Q4 2024): $14.4 million, compared to a net loss of $7.3 million in Q4 2023.
- Adjusted Net Income (Q4 2024): $21.4 million, compared to $12.5 million in Q4 2023.
- Cash at Year End 2024: $58.6 million.
- Debt at Year End 2024: Reduced to $100 million from $158.2 million at year-end 2023.
- Ship Count at Year End 2024: 199 ships, up from 193 ships at year-end 2023.
- Cruise Ship Personnel at Year End 2024: 4,352 personnel, up from 4,120 at year-end 2023.
- Medi-spa Services: Available on 147 ships, up from 139 ships at the end of fiscal year 2023.
- Share Repurchase Program: $38.7 million remaining on the $50 million program.
- Fiscal Year 2025 Revenue Guidance: $950 million to $970 million.
- Fiscal Year 2025 Adjusted EBITDA Guidance: $115 million to $125 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OneSpaWorld Holdings Ltd (OSW, Financial) reported a strong financial performance for fiscal 2024, with total revenues increasing by 13% to a record $895 million.
- Income from operations increased by 44% to $78.1 million, showcasing significant operational efficiency.
- The company expanded its health and wellness services, adding 7 new maritime health and wellness centers and entering a new seven-year agreement with Royal Caribbean International and Celebrity Cruises.
- Adjusted EBITDA increased by 26% to a record $112.1 million, indicating strong profitability.
- OneSpaWorld Holdings Ltd (OSW) enhanced its capital structure by reducing debt to $100 million and initiating a quarterly cash dividend payment and share repurchase program.
Negative Points
- The company's service gross margin expansion was less than expected, indicating potential challenges in cost management.
- Despite strong revenue growth, the company expects flat margin profiles for fiscal 2025, suggesting limited margin expansion opportunities.
- The company faces limitations in expanding Medi-spa services due to real estate constraints on ships.
- The first quarter of fiscal 2025 is expected to be negatively impacted by one less operating day and a higher number of dry docks, affecting revenue by approximately $4.3 million.
- The market reacted negatively to the earnings release, indicating potential investor concerns or unmet expectations.
