Norwegian Cruise Line (NCLH) raises full-year EPS guidance, stock gains
Norwegian Cruise Line (NYSE: NCLH) reported mixed second-quarter earnings on Wednesday. It beat the EPS estimate but slightly missed consensus revenue expectations. However, its shares gained more than 4% premarket after the company raised its full-year guidance.
Second-quarter earnings per share (EPS) came in at $0.40, surpassing analyst expectations of $0.34 by $0.06. However, revenue for the quarter fell slightly short, coming in at $2.37 billion compared to the consensus estimate of $2.38 billion.
Despite the revenue miss, the company highlighted several strong performance indicators. Norwegian generated a record second-quarter total revenue of $2.4 billion, marking an 8% increase from the same period in 2023 on a 4% capacity growth.
Adjusted EBITDA grew by 14% to $587.7 million, surpassing the previous year's $514.8 million and beating guidance of $555 million.
Occupancy rates were slightly above guidance at 105.9%, with total revenue per Passenger Cruise Day increasing by approximately 2% compared to the second quarter of 2023.
Looking ahead, Norwegian Cruise Line forecasts full-year 2024 adjusted EPS to be $1.53 compared to its previous forecast of $1.42.
For the third quarter of 2024, the company projects an adjusted EPS range of $0.92.
The company also raised its full-year Net Yield guidance to approximately 8.2% and adjusted EBITDA guidance to approximately $2.35 billion.
Harry Sommer, president and CEO of Norwegian Cruise Line, stated, "2024 continues to be an exceptional year in terms of our financial performance, as evidenced by our strong second-quarter results, which exceeded guidance across the board."
"As we raise our full-year guidance a third time, we expect our Adjusted EPS to grow approximately 120% compared to 2023, driven mainly by our ability to capitalize on the robust market demand and ensuring our guests are vacationing better and experiencing more across our brands."
By Sam Boughedda