Norwegian Cruise Line (NYSE: NCLH) stock surged about 8% in intraday trading Monday after the company upgraded its full-year guidance amid strong demand.
Norwegian Cruise Line (NCLH) has once again revised its 2024 earnings outlook, signaling confidence in its recovery trajectory amidst robust demand and record bookings. The company raised its adjusted earnings per share (EPS) forecast to around $1.42 from $1.32, reflecting a bullish sentiment regarding its financial performance for the year.
Additionally, Norwegian Cruise Line upped its net yield forecast to around 7.2% from approximately 6.4%, alongside an increase in the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to about $2.3 billion from approximately $2.25 billion.
This latest update marks the second upward revision to Norwegian’s earnings guidance in 2024. The company had previously increased its outlook for these metrics following better-than-expected first-quarter earnings earlier this month.
Chief Financial Officer Mark Kempa attributed the positive outlook to “robust demand and record bookings.”
Norwegian Cruise Line (NCLH), like many others in the travel industry, faced significant challenges when the COVID-19 pandemic prompted widespread travel restrictions in early 2020. However, the gradual easing of restrictions has sparked a resurgence in travel demand, benefiting cruise operators and airlines alike.
Despite the positive trends in demand and bookings, Norwegian’s profits haven’t fully rebounded from the pandemic. In the first quarter of 2024, the company reported a profit of $17.4 million on $2.19 billion in revenue. For comparison, in the first quarter of 2019, Norwegian’s net income was $118.2 million on $1.4 billion in revenue.
However, Norwegian’s stock still lags significantly behind its pre-pandemic levels, currently trading at about 70% below those levels. The road to recovery remains challenging, with higher operating and interest expenses continuing to impact profitability.
Norwegian Cruise Line (NYSE: NCLH) Stock Price Action
NCLH stock soared 7.56% on Monday, closing at $16.94. This marks a 6.94% increase over the week. Trading volume soared to 33,477,336 shares, significantly higher than the average daily volume of 14.04 million.
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