Norwegian Cruise Line (NYSE: NCLH ) reported a significant increase in revenue for the fourth quarter with figures of $1.99 billion compared to analysts' consensus of $1.97 billion. Despite a loss per share of -$0.18, which was $0.06 below the consensus estimate of -$0.12, the company's share price rose 6% on robust first quarter earnings guidance that beat expectations.
The company's fourth quarter performance, which represented a 32% increase in revenue compared to the same period in 2019, was accompanied by an optimistic outlook for the first quarter of 2024. Norwegian Cruise Line expects adjusted earnings per share (EPS) of $0.12. significantly higher than the consensus estimate of -$0.20. This forecast contributed to positive investor sentiment, which was reflected in the upward movement of the share price.
For the full year 2024, the company forecasts adjusted earnings per share of USD 1.23, in line with the consensus estimate. The company's President and CEO, Harry Sommer, highlighted the year's achievements, including the delivery of three new ships and a record-breaking booking position and pricing for 2024 voyages. Sommer emphasized the company's commitment to innovation and exceptional guest experiences, which are expected to drive performance in the coming year.
With GAAP net income of $166.2 million, or $0.39 per share, the cruise operator also reported a return to profitability for the full year for the first time since 2019. Adjusted EBITDA amounted to USD 1.861 billion, in line with the forecast of USD 1.860 billion, despite a negative impact of USD 0.07 from foreign exchange fluctuations. The company's focus on cost reduction and efficiency and a margin improvement initiative contributed to lower operating costs and four consecutive quarters of year-over-year improvement in adjusted net cruise costs excluding fuel per capacity day.
Occupancy for the year reached 102.9%, in line with guidance of 102.6%, and total revenue per passenger cruise day increased approximately 17% compared to 2019. In addition to financial growth, Norwegian Cruise Line announced a revised climate change strategy and set interim targets to reduce greenhouse gas intensity, demonstrating its commitment to sustainability.
As the cruise industry continues to recover from the challenges of the pandemic, Norwegian Cruise Line's strong performance and forward-looking guidance point to a positive trajectory for the company and its stakeholders.
Source: Investing.com