Norwegian Cruise’s stock jumps after company says it expects profit this quarter

Daily Trade

Shares of Norwegian Cruise Line Holdings Ltd. rallied toward its biggest gain in 16 months, after the cruise operator provided a surprising profit outlook for the current quarter, citing continued “healthy consumer demand” and record bookings.

The company
NCLH,
+12.74%

said it took delivery of three new cruise ships in 2023, which represents the most deliveries in a single year in its 57-year history.

“The company continues to experience healthy consumer demand and is at an all-time high booked position and pricing reflective of some of the best booking weeks in the company’s history beginning with Black Friday and Cyber Monday,” Norwegian said in a statement.

The stock shot up 14.7% in morning trading, which puts it on track for the best one-day performance since it soared 16.8% on Oct. 4, 2022.

The rally was enough to make it the S&P 500 index’s
SPX
best performer. It also helped boost the stocks of rival cruise companies, as Carnival Corporation’s
CCL,
+6.87%

climbed 8.3% and Royal Caribbean Group’s
RCL,
+3.41%

gained 5.2%.

For the fourth quarter to Dec. 31, the company said net losses narrowed to $106.5 million, or 25 cents a share, from $482.5 million, or $1.14 a share, in the same period a year ago. Excluding nonrecurring items, the adjusted per-share loss of 18 cents compares with the FactSet loss consensus of 12 cents.

Revenue grew 30.8% to $1.99 billion, above the FactSet consensus of $1.97 billion, as passenger ticket revenue increased 31.8% to $1.33 billion and onboard and other revenue rose 28.7% to $653.4 million.

Occupancy was 99.2%, compared with 106% in the third quarter, as cruises to Israel were canceled and redirected as a result of the ongoing conflict in Israel and disruptions in the Red Sea.

For 2023, occupancy was 102.9%, compared with company guidance of 102.6%.

Read: This is what the Red Sea attacks means for U.S. retailers, says Moody’s.

For the first quarter, the company said it expects adjusted EPS of 12 cents, while the current FactSet consensus is for a loss of 20 cents.

For the full year of 2024, the company expects adjusted EPS of $1.23, which is well above current expectations of $1.21.

Norwegian’s stock has advanced 27.1% over the past three months, while the S&P 500
SPX,
-0.01%

has gained 11.4%.

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