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Key Takeaways
- Cruise stocks rallied after a strong earnings report and forecast from Norwegian Cruise Line.
- Norwegian reported its first annual profit since 2019, sending shares up over 16% in intraday trading Tuesday, putting the stock on track for its best day in more than a year.
- Cruise operators were hit hard by the pandemic and resulting shutdowns.
- Carnival and Norwegian shares are about 50% off their prices at the beginning of March 2020, while Royal Caribbean shares have recovered from pandemic losses.
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.