OneSpaWorld (NASDAQ:OSW) Hits New 1-Year High Following Better-Than-Expected Earnings

Key Points

• New 52-week high after better-than-expected results: shares rose to $25.33 following Q earnings of $0.27 EPS (vs. $0.25 est.) and revenue of $247.63M (vs. $243.89M), with revenue up 12.8% year-over-year.
• Quarterly dividend announced: $0.05 per share (annualized $0.20) with an ex-dividend date of May 20 and payment on June 3, implying a yield of 0.8% and a dividend payout ratio of 28.99%.
• Positive analyst and institutional backdrop: MarketBeat consensus is a "Buy" with a $26.33 target, several firms raising targets or initiating coverage, and institutional investors owning about 95.98% of the stock with major funds increasing stakes.

Shares of OneSpaWorld Holdings Limited (NASDAQ:OSW - Get Free Report) reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $25.33 and last traded at $25.1520, with a volume of 826496 shares changing hands. The stock had previously closed at $23.75.

The company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.25 by $0.02. OneSpaWorld had a net margin of 7.45% and a return on equity of 17.08%. The business had revenue of $247.63 million for the quarter, compared to the consensus estimate of $243.89 million. During the same period last year, the company earned $0.15 EPS. The firm's revenue was up 12.8% compared to the same quarter last year.

OneSpaWorld Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Wednesday, May 20th will be given a dividend of $0.05 per share. The ex-dividend date is Wednesday, May 20th. This represents a $0.20 annualized dividend and a yield of 0.8%. OneSpaWorld's dividend payout ratio (DPR) is currently 28.99%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on OSW. Stifel Nicolaus cut their target price on shares of OneSpaWorld from $27.00 to $26.00 and set a "buy" rating on the stock in a research report on Thursday, January 15th. Truist Financial lifted their target price on shares of OneSpaWorld from $24.00 to $25.00 and gave the stock a "buy" rating in a research report on Tuesday, February 17th. Zacks Research upgraded shares of OneSpaWorld from a "strong sell" rating to a "hold" rating in a research report on Monday, March 16th. TD Cowen lifted their target price on shares of OneSpaWorld from $26.00 to $27.00 and gave the stock a "buy" rating in a research report on Monday, March 30th. Finally, Jefferies Financial Group began coverage on shares of OneSpaWorld in a research report on Tuesday, March 24th. They set a "buy" rating and a $30.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, OneSpaWorld presently has a consensus rating of "Buy" and a consensus target price of $26.33.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. First Trust Advisors LP lifted its position in shares of OneSpaWorld by 2.9% in the 4th quarter. First Trust Advisors LP now owns 3,179,211 shares of the company's stock worth $65,937,000 after purchasing an additional 90,381 shares during the period. American Century Companies Inc. lifted its position in shares of OneSpaWorld by 2.7% during the 3rd quarter. American Century Companies Inc. now owns 3,055,737 shares of the company's stock valued at $64,598,000 after acquiring an additional 79,259 shares during the period. Vanguard Group Inc. lifted its position in shares of OneSpaWorld by 3.0% during the 4th quarter. Vanguard Group Inc. now owns 3,017,136 shares of the company's stock valued at $62,575,000 after acquiring an additional 89,191 shares during the period. Raymond James Financial Inc. lifted its position in shares of OneSpaWorld by 0.4% during the 2nd quarter. Raymond James Financial Inc. now owns 2,525,357 shares of the company's stock valued at $51,492,000 after acquiring an additional 10,807 shares during the period. Finally, Geode Capital Management LLC lifted its position in shares of OneSpaWorld by 5.1% during the 4th quarter. Geode Capital Management LLC now owns 2,505,052 shares of the company's stock valued at $51,964,000 after acquiring an additional 122,681 shares during the period. Institutional investors and hedge funds own 95.98% of the company's stock.

OneSpaWorld Stock Up 4.5%

The company has a current ratio of 1.91, a quick ratio of 1.10 and a debt-to-equity ratio of 0.15. The stock's 50-day moving average is $22.58 and its 200-day moving average is $21.52. The company has a market cap of $2.52 billion, a price-to-earnings ratio of 35.99 and a beta of 0.95.

OneSpaWorld Company Profile

OneSpaWorld Holdings Ltd is a global provider of spa and wellness services, catering primarily to the cruise line, hospitality and venue-based leisure industries. The company designs and operates on-board spa facilities, salon services and retail boutiques, offering treatments such as massage, facial and body therapies, nail care, hair styling and aesthetic enhancements. Additionally, OneSpaWorld provides program consulting, management, training and product distribution services to its partners, enabling tailored spa experiences across diverse passenger and guest demographics.

OneSpaWorld’s core operations span major cruise lines—such as Carnival Corporation, Royal Caribbean Group, MSC Cruises and Virgin Voyages—as well as luxury resort and hotel brands.

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