Norwegian Cruise Line Holdings reported a wider-than-expected loss in the fourth quarter, but investors are focusing on its promising 2024 outlook.
Record Booked Position and High Demand
The cruise operator shared that its booked position is currently at an all-time high, signaling robust consumer demand. Norwegian Cruise Line has experienced exceptional booking weeks since Black Friday in November, culminating in an advanced ticket sales balance of $3.2 billion by the end of 2023—an impressive 56% increase compared to 2019.
Unexpected Profit Projection
Despite the fourth-quarter loss, Norwegian Cruise Line anticipates a surprising profit in the first quarter. The company projects adjusted earnings of 12 cents per share for Q1, surpassing the anticipated 20 cents per share loss. Furthermore, their full-year EPS guidance of $1.23 slightly exceeds estimates.
Financial Performance
In the fourth quarter, the cruise operator reported an adjusted loss of 18 cents per share on revenue of $1.99 billion. These figures were slightly below analysts’ expectations of a 12 cents per share loss on revenue of $1.96 billion, according to FactSet data.
Market Reaction
Following this announcement, Norwegian Cruise Line Holdings stock surged more than 9.5% in premarket trading. Year-to-date, the stock had declined by 20.5% as of Monday’s close. In contrast, Royal Caribbean shares rose by 2.4%, and Carnival was up by 4.5%.
Overall, Norwegian Cruise Line Holdings remains optimistic about the future, supported by strong demand and a positive financial outlook.