Viking Holdings Ltd (NYSE:VIK) is a prominent player in the leisure and recreation services industry, known for its extensive fleet of ships. The company recently reported its financial results for the third quarter of 2025, showcasing impressive growth and financial performance. VIK's earnings per share (EPS) and revenue figures have consistently exceeded expectations, reflecting its strong market position.
On November 19, 2025, VIK reported an EPS of $1.20, surpassing the estimated $1.19. This represents a significant improvement from the $0.89 EPS reported in the same quarter last year. The EPS surprise of +0.84% highlights the company's ability to outperform analyst expectations, as noted by Zacks. Over the past four quarters, VIK has exceeded consensus EPS estimates three times, demonstrating consistent financial strength.
VIK achieved a revenue of approximately $2 billion for the quarter ending September 2025, marking a 19.1% increase compared to the same period in 2024. This revenue figure exceeded the Zacks Consensus Estimate by 0.05%, showcasing the company's robust growth trajectory. The company's gross margin rose by 22.9%, while the adjusted gross margin increased by 21.4% year-over-year, indicating improved operational efficiency.
Despite its strong financial performance, VIK's financial ratios present a mixed picture. The company's price-to-earnings (P/E) ratio is approximately 33, suggesting that investors are willing to pay $33 for every $1 of earnings. However, the debt-to-equity ratio is notably high at approximately 20.57, indicating a significant reliance on debt financing. Additionally, the current ratio of around 0.64 suggests potential challenges in covering short-term liabilities with short-term assets.
VIK's valuation metrics, such as the price-to-sales ratio of about 4.69 and the enterprise value to sales ratio of around 5.24, reflect the company's market valuation in relation to its sales. The enterprise value to operating cash flow ratio is approximately 13.48, indicating how many times the operating cash flow can cover the enterprise value. Despite these challenges, VIK's earnings yield of about 3.03% represents the percentage of each dollar invested that was earned by the company, highlighting its profitability.
