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Norwegian Cruise Line raises full-year EPS guidance, stock gains

Published 07/31/2024, 08:43 AM
Updated 07/31/2024, 08:50 AM
© Reuters Norwegian Cruise Line (NCLH) raises full-year EPS guidance, stock gains
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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 analysts' 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."

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