Norwegian Cruise Line Holdings Ltd. NCLH reported solid fourth-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.
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Management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands and the effective execution by both shoreside and shipboard teams. A continued focus on margin improvement helped the company achieve cost savings during the quarter.
Following the results, the company’s shares rose 2.4% in today’s pre-market trading session.
NCLH’s Q4 Earnings & Revenues
Norwegian Cruise reported an adjusted earnings per share of 26 cents, topping the Zacks Consensus Estimate of 11 cents. In the prior-year quarter, the company reported an adjusted loss per share of 18 cents.
Quarterly revenues of $2.11 billion beat the consensus mark of $2.09 billion. In the prior-year quarter, the company reported revenues of $1.99 billion.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Passenger ticket revenues were $1.41 billion compared with $1.33 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.36 billion.
Onboard and other revenues increased to $700.6 million from $653.4 million reported in the prior-year quarter. We expected onboard and other revenues to be $696.4 million.
NCLH’s Expenses & Operating Results
Total cruise operating expenses decreased 1.1% year over year to $1.31 billion, due to lower commissions, transportation and other, as well as fuel and food costs. However, this was partially offset by higher onboard and other costs, and payroll and related expenses.
During the fourth quarter, gross cruise costs per Capacity Day were $285.92 compared with $279.52 reported in the prior year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $157.54 compared with $150.70 reported in the prior year period. Fuel price per metric ton (net of hedges) fell to $641 from $726 in 2023.
Net interest expenses were $175.4 million, down from $197.4 million reported in the year-ago quarter.
2024 Highlights of NCLH
Total revenues in 2024 were $9.48 billion, up from $8.55 billion reported in 2023.
Adjusted EBITDA in 2024 was $2.45 billion compared with $1.86 billion reported in 2023.
In 2024, adjusted earnings per share were $1.82, up from 70 cents reported in the previous year.
NCLH’s Balance Sheet
As of Dec. 31, 2024, the company had cash and cash equivalents of $190.8 million, down from $402.4 million at the end of 2023. Long-term debt was $11.78 billion compared with $12.31 billion as of 2023 end.
Booking Update of NCLH
During the fourth quarter, the company reported strong consumer demand across itineraries and brands, which is expected to continue into 2025 and 2026. Bookings remain at an optimal level on a 12-month forward basis. Occupancy during the quarter was 104.9%. The advance ticket sales balance, including long-term bookings, was $3.2 billion at the end of the quarter.
Q1 and 2025 Guidance by NCLH
For first-quarter 2025, NCLH anticipates occupancy to be approximately 101.5% and Capacity Days to be about 5.71 million. For the quarter, adjusted interest expenses are expected to be approximately $170 million, while depreciation and amortization are anticipated to be about $230 million. Adjusted EBITDA is expected to be about $435 million. Adjusted EPS is predicted to be nearly 8 cents.
For 2025, the company anticipates occupancy to be approximately 103.4% and Capacity Days to be about 24.55 million. During the year, adjusted interest expenses are expected to be approximately $700 million. Depreciation and amortization are anticipated at nearly $985 million. Adjusted EBITDA during the year is expected to be nearly $2.72 billion. For 2025, adjusted EPS is currently expected to be nearly $2.05.
NCLH’s Zacks Rank
Norwegian Cruise currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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