Carnival (NYSE: CCL) stock soared over 7% in intraday trading on Monday, mirroring the positive momentum of Norwegian Cruise Line (NCLH). The latter saw a notable increase in its stock value after raising its 2024 guidance and setting new financial targets for 2026.
Norwegian Cruise Line (NCLH) recently announced a comprehensive new strategy on Monday during its Investor Day, aimed at enhancing shareholder returns through a refreshed vision and strategic initiatives. The “Charting The Course” strategy sets ambitious three-year financial and sustainability targets.
Norwegian Cruise Line has updated its 2024 financial outlook as part of this strategy. The company has increased its full-year net yield growth expectations from 6.4% to 7.2%. Additionally, Norwegian has raised the full-year adjusted EBITDA forecast from $2.25 billion to $2.3 billion, and the company has increased the adjusted earnings guidance from $1.32 to $1.42 per share, surpassing the previous estimate of $1.35 per share.
Looking further ahead, Norwegian Cruise Line introduced new targets for 2026. These include adjusted earnings of around $2.45 per share, an adjusted operational EBITDA margin of about 39%, a reduction in net leverage to mid-four turn levels, and a record adjusted return on invested capital (ROIC) of 12%.
“We have continued to see solid demand and record bookings,” said Mark Kempa, CFO at Norwegian Cruise Line Holdings. “We are now thrilled to launch this financial plan by setting long-term targets with increased 2024 guidance, putting ourselves on solid footing to enhance shareholder value in the coming years.”
In related news, Wells Fargo analyst Daniel Politzer maintained an Overweight rating for Carnival Corporation (CCL) and raised the price target from $22 to $23 last Friday.
Carnival (NYSE: CCL) Stock Price Action
As a result of Norwegian’s positive outlook, CCL stock surged 7.27% on Monday, closing at $16.09. This marks a 10.51% increase over the week. Trading volume soared to 53,286,328 shares, significantly higher than the average daily volume of 30.54 million.
