Cruise Stocks Rally After Norwegian Posts First Profitable Year Since 2019

Cruise stocks rallied in intraday trading Tuesday after a strong earnings report and forecast from Norwegian Cruise Line Holdings (NCLH). 

Norwegian reported full-year adjusted net income of $298 million or 70 cents per share for 2023, its first annual profit since 2019. Revenue totaled $8.5 billion, a 76% increase from 2022 and 32% higher than in 2019.

Norwegian also said it’s expecting another strong year ahead, with 2024 bookings and prices at all-time highs. The company forecast full-year adjusted net income of $635 million or $1.23 per share, a year-over-year increase of 76%. 

Norwegian shares jumped over 16% Tuesday afternoon, putting the stock on track to have its best day in more than a year. With Tuesday’s gains, the stock has risen close to 13% in the past year. 

Cruise operators were hit hard by the pandemic and resulting shutdowns. The businesses hemorrhaged money for years as restrictions kept cruise ships docked for a time and then dramatically limited occupancy once operations resumed.

Of the three major providers—Norwegian, Royal Caribbean (RCL), and Carnival Corp. (CCL)—only Royal Caribbean’s stock price has recovered from its pandemic-era losses. Carnival and Norwegian shares are about 50% off their prices at the beginning of March 2020.

Norwegian’s stock has trailed its larger competitors over the last year. Royal Caribbean stock rose more than 3% in intraday trading Tuesday after Norwegian’s earnings, bringing its 12-month return to more than 70%. Carnival shares climbed 7% Tuesday and have risen 46% in the past year.