Norwegian Cruise Line Increases Full-Year EPS Guidance, Stock Rises

Norwegian Cruise Line recently released its second-quarter earnings report, which presented a mixed bag of results. The company exceeded earnings per share (EPS) expectations but fell slightly short in revenue forecasts. Despite this, shares experienced a more than 4% increase in premarket trading following the announcement of a raised full-year guidance.

For the second quarter, EPS was reported at $0.40, outperforming analysts’ predictions of $0.34 by $0.06. However, revenue for the quarter totaled $2.37 billion, which was below the consensus estimate of $2.38 billion.

Even with the revenue shortfall, Norwegian Cruise Line pointed to several positive performance metrics. The company achieved a record total revenue of $2.4 billion for the second quarter, reflecting an 8% increase from the same time last year, attributed to a 4% growth in capacity.

Adjusted EBITDA saw a 14% increase, reaching $587.7 million, compared to $514.8 million the previous year, and surpassing the guidance of $555 million.

Occupancy rates also exceeded expectations, hitting 105.9%, while revenue per Passenger Cruise Day grew by about 2% year-over-year.

Looking ahead, Norwegian Cruise Line has adjusted its full-year 2024 EPS forecast to $1.53, up from the previous outlook of $1.42. In addition, the company estimates an adjusted EPS of around $0.92 for the third quarter of 2024.

Furthermore, it raised its full-year Net Yield guidance to approximately 8.2% and adjusted EBITDA guidance to about $2.35 billion.

Harry Sommer, the company’s president and CEO, remarked on the strong financial performance observed in the second quarter, stating that it exceeded all guidance. He expressed optimism about the remainder of the year, indicating that the adjusted EPS is expected to grow by about 120% compared to 2023, primarily due to the ability to harness robust market demand and enhance guest experiences across their brands.