Norwegian Cruise Line Stock Jumps on Raised Guidance

Norwegian Cruise Line Holdings (NCLH) was the best-performing stock in the S&P 500 Monday after the Miami-based cruise operator raised its full-year guidance amid strong demand. 

Norwegian on Monday raised its 2024 adjusted earnings per share (EPS) forecast to about $1.42 from $1.32. The company also upped its net yield forecast to approximately 7.2% from about 6.4%, as well as its forecast for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), which was raised to about $2.3 billion from approximately $2.25 billion.

Shares of Norwegian were up 8.3% to $17.05 as of 12:54 p.m. ET Monday. Competitors Royal Caribbean (RCL) and Carnival (CCL) were up 4.9% and 6.7%, respectively.

Monday’s update was the second such increase to Norwegian’s earnings guidance this year. The company raised its outlook for all three of the above metrics when it reported better-than-expected first-quarter earnings at the beginning of the month.

“We have continued to see very strong demand and record bookings,” Chief Financial Officer (CFO) Mark Kempa said. 

Norwegian’s operations were brought to a grinding halt in early 2020 when COVID-19 prompted much of the world to implement strict travel restrictions. Travelers have since flocked back to harbors and airports amid a post-pandemic travel boom that’s reversed the once-bleak fortunes of cruise operators and airlines. 

However, higher operating and interest expenses mean Norwegian’s profits still haven’t fully recovered from the pandemic. In the first quarter of 2024, Norwegian reported profit of $17.4 million on $2.19 billion in revenue. In the same quarter of 2019, the company’s net income totaled $118.2 million on revenue of $1.4 billion.

Despite Monday’s gains, Norwegian’s stock is still about 70% off its pre-pandemic levels.