Norwegian Cruise Line Holdings (NYSE:NCLH) rallied on Tuesday after Q4 profit smashed expectations, despite the disruptions around the Red Sea during the quarter.
Norwegian Cruise Line (NCLH) management said the company has continued to see exceptional demand for its namesake brand, with bookings and pricing at higher levels than 2023 for all four quarters of 2024. Oceania Cruises and Regent Seven Seas Cruises also continued to see strong demand across all geographies with the exception of redeployed itineraries due to cancellations in the Middle East and Red Sea. Of note, onboard revenue per passenger cruise day was up 20% during the quarter compared to 2019, with broad-based strength across all revenue streams. NCLH’s advance ticket sales balance, including the long-term portion, ended 2023 at a year-end record of $3.2B, approximately 56% higher than at the end of 2019. Gross margin per capacity day was approximately $79 in the quarter. Net yield growth was approximately 8.2%, or 8.6% versus 2019 on a constant currency basis, in line with guidance.
Looking ahead, the cruise line operator sees 2024 EPS of about $1.23 vs. $1.21 consensus and adjusted EBITDA of $2.2B vs. $2.1B consensus. NCLH now sees a Q1 profit, instead of a loss.
Shares of Norwegian Cruise Line Holdings (NCLH) jumped 10.15% in early trading to $17.61. Over the last 52 weeks, NCLH is up 6.8% after many peaks and valleys. Royal Caribbean Cruises (RCL) rose 2.82% and Carnival (CCL) was up 5.40%.
Cruise line stocks rally after solid outlook from Norwegian Cruise Line
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