Lindblad Expeditions (NASDAQ:LIND) Surprises With Q1 Sales

Anthony Lee /
2024/04/30 7:47 am EDT

Cruise and exploration company Lindblad Expeditions (NASDAQ:LIND) beat analysts' expectations in Q1 CY2024, with revenue up 7.1% year on year to $153.6 million. The company expects the full year's revenue to be around $620 million, in line with analysts' estimates. It made a GAAP loss of $0.10 per share, down from its profit of $0.01 per share in the same quarter last year.

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Lindblad Expeditions (LIND) Q1 CY2024 Highlights:

  • Revenue: $153.6 million vs analyst estimates of $149.7 million (2.6% beat)
  • EPS: -$0.10 vs analyst estimates of -$0.05 (-$0.05 miss)
  • The company reconfirmed its revenue guidance for the full year of $620 million at the midpoint
  • Gross Margin (GAAP): 48.4%, down from 49.8% in the same quarter last year
  • Free Cash Flow of $37.45 million is up from -$17.11 million in the previous quarter
  • Market Capitalization: $390 million

Sven Lindblad, Chief Executive Officer, said "Lindblad's first quarter results set the stage for another year of strong growth and record results in 2024. The booking momentum we experienced throughout 2023 has continued into this year as more and more guests want to experience the thrill of exploration in the remarkable destinations we visit. At the same time, we are hard at work with our partners at National Geographic on ways to maximize the long-term value of our expanded strategic relationship, including preparing to leverage the Disney sales network and building out our international expansion opportunities. As we focus on driving higher returns across our fleet, we also continue to broaden and deepen our land-based portfolio with the recent announced acquisition of Wineland-Thompson Adventures and increased ownership interests in Natural Habitat and DuVine Cycling. Demand for experiential travel continues to grow and as we further ramp occupancies across our fleet, expand our portfolio of high-quality authentic experiences and maintain premium pricing levels, we are uniquely positioned to significantly ramp earnings and build long-term shareholder value in the years ahead."

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Hotels, Resorts and Cruise Lines

Hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

Sales Growth

Examining a company's long-term performance can provide clues about its business quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Lindblad Expeditions's annualized revenue growth rate of 12.8% over the last five years was mediocre for a consumer discretionary business. Lindblad Expeditions Total RevenueWithin consumer discretionary, a long-term historical view may miss a company riding a successful new property or emerging trend. That's why we also follow short-term performance. Lindblad Expeditions's annualized revenue growth of 64.9% over the last two years is above its five-year trend, suggesting some bright spots.

This quarter, Lindblad Expeditions reported solid year-on-year revenue growth of 7.1%, and its $153.6 million of revenue outperformed Wall Street's estimates by 2.6%. Looking ahead, Wall Street expects sales to grow 9% over the next 12 months, an acceleration from this quarter.

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Cash Is King

If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills.

Over the last two years, Lindblad Expeditions broke even from a free cash flow perspective, subpar for a consumer discretionary business.

Lindblad Expeditions's free cash flow came in at $37.45 million in Q1, equivalent to a 24.4% margin. This result was great for the business as it flipped from cash flow negative in the same quarter last year to cash flow positive this quarter.

Key Takeaways from Lindblad Expeditions's Q1 Results

It was good to see Lindblad Expeditions beat analysts' revenue expectations this quarter. On the other hand, its EPS missed and its operating margin fell short of Wall Street's estimates. Overall, this was a mixed quarter for Lindblad Expeditions. The stock is up 1.9% after reporting and currently trades at $7.45 per share.

So should you invest in Lindblad Expeditions right now? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.