OneSpaWorld Holdings Limited OSW provided an update on its business and financial results for the fourth quarter and fiscal 2024. The update highlights the strength of the company’s operating platform and the solid execution of its team in managing a complex business model. The company stated that the results are preliminary and subject to final closing.

OSW's Q4 Preliminary Results

In the fiscal fourth quarter, the company anticipates total revenues in the range of $211-$216 million compared with the prior projection of $210 to $215 million. The projection indicates a rise of 10% year over year at the midpoint compared with $194.8 million reported in the fourth quarter of fiscal 2023.

For fiscal 2024, the company anticipates total revenues in the range of $889-$894 million. The projection indicates an increase of 12% from fiscal 2023 revenues of $794 million (calculated at the midpoint of the projected range).

The company expects fiscal fourth-quarter adjusted EBITDA to lie in the range of $25.5-$27.5 million. The projection indicates an increase of 13% from fiscal 2023 levels of $23.4 million (calculated at the midpoint of the projected range). Earlier the company anticipated adjusted EBITDA to be in the range of $25-$27 million.

For fiscal 2024, the company anticipates adjusted EBITDA in the range of $110.5-$112.5 million. The projection indicates an increase of 25% from fiscal 2023 levels of $89.2 million (calculated at the midpoint of the projected range).

OneSpaWorld’s Fiscal 2025 Guidance

Given the strong consumer demand and a proven strategy in place, the company is optimistic and anticipates maintaining the positive momentum into fiscal 2025. For the fiscal 2025, the company expects total revenues in the range of $950-$970 million. During the year, adjusted EBITDA is anticipated to be between $115 million and $125 million.

OSW Stock Price Performance

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The company’s shares have gained 11.2% in the past three months compared with the industry’s 3.5% growth. The company is benefiting from a healthy demand environment. Also, strength in retail sales and pre-bookings are adding to the positives. OSW has capitalized on the growing demand for premium wellness services by introducing advanced treatments such as cryotherapy and LED light facial services. These offerings, complemented by technology-driven services like the Elemis Biotec 2.0 facial, have driven substantial revenue growth. Simplified service menus and optimized treatment lengths have also contributed to higher guest engagement and spending.

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 2025 have increased in the past 60 days, depicting analysts’ optimism regarding the stock growth potential.

OSW’s Zacks Rank & Other Key Picks

OneSpaWorld currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the Zacks Consumer Discretionary sector are:

Norwegian Cruise Line Holdings Ltd. NCLH currently carries a Zacks Rank #2. NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 53% in the past year. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

The Zacks Consensus Estimate for NCLH’s 2025 sales and earnings per share (EPS) indicates growth of 8.4% and 26.5%, respectively, from the year-ago levels.

Carnival Corporation & plc CCL currently carries a Zacks Rank #2. CCL has a trailing four-quarter earnings surprise of 326.4%, on average. The stock has surged 40.9% in the past year.

The Zacks Consensus Estimate for CCL’s 2025 sales and EPS indicates growth of 3.9% and 16.6%, respectively, from the year-ago levels.

Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 87.5% in the past year.

The Zacks Consensus Estimate for RCL’s 2025 sales and EPS indicates growth of 9.5% and 23.8%, respectively, from the year-ago levels.

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