OneSpaWorld (OSW) Reports Q4 Business Update, Sales Up Y/Y
OneSpaWorld Holdings Limited OSW provided an update on its business and financial results for the fourth quarter and fiscal 2023. The company stated that the results are preliminary and subject to final closing.
Preliminary Results
During the fiscal fourth quarter, the company highlighted impressive holiday season performance despite facing disruptions from the turmoil in the Middle East and an unexpected drydock situation involving a major cruise ship. Attributes of solid demand, effective strategic execution, robust product innovation and enhanced service offerings added to the positives.
In the fiscal fourth quarter, the company anticipates total revenues in the range of $193-$198 million. The projection indicates a rise of 16% year over year, calculated at the midpoint of the provided preliminary range.
For the fiscal 2023, the company anticipates total revenues in the range of $792-$797 million. The projection indicates an increase of 45% from fiscal 2022 revenues of $546.3 million (calculated at the midpoint of the projected range).
The company expects fiscal fourth-quarter EBITDA to lie in the range of $20.0-$23.0 million, reflecting a rise of 4% year over year, calculated at the midpoint of the provided preliminary range. For the fiscal 2023, the company anticipates EBITDA in the range of $86.0-$89.0 million. The projection indicates an increase of 74% from fiscal 2022 levels of $50.4 million (calculated at the midpoint of the projected range).
Fiscal 2024 Guidance
Given the strong consumer demand and a proven strategy in place, the company is optimistic and anticipates maintaining the positive momentum into fiscal 2024. For the fiscal 2024, the company expects total revenues in the range of $850-$870 million. During the year, EBITDA is anticipated to be between $90 million and $100 million.
Price Performance
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The company’s shares have gained 26.1% in the past three months compared with the industry’s 10.5% growth. The company is benefitting from a healthy demand environment. Also, strength in retail sales and pre-bookings are adding to the positives. OSW plans to unveil new and innovative products and services, empower its cruise ship staff (to deliver exceptional service), enhance efficiency (through technological upgrades) and secure new contracts to foster growth. Earnings estimates for fiscal 2024 have remained unchanged in the past 30 days.
Zacks Rank & Key Picks
OneSpaWorld currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
Virco Mfg. Corporation VIRC sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 153.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 78.1% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 10.8% and 34.7%, respectively, from the year-ago period’s levels.
American Public Education, Inc. APEI sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 23.2% on average. Shares of APEI have declined 20.1% in the past year.
The Zacks Consensus Estimate for APEI’s 2024 sales and EPS indicates a rise of 2.5% and 115.8%, respectively, from the year-ago period’s levels.
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