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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
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 LinesHotels, 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 GrowthExamining 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. Within 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.
Cash Is KingIf 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.
