Norwegian Cruise Line Holdings Stock Is Rising Today: What's Going On?

Norwegian Cruise Line Holdings Ltd NCLH shares are trading higher Monday after the company announced it raised its 2024 guidance and set new 2026 financial targets.

What Happened: Norwegian Cruise Line is holding its Investor Day Monday, which involves discussion of a new comprehensive “Charting the Course” strategy. The strategy includes a refreshed vision, strategic initiatives and three-year financial and sustainability targets geared at enhancing shareholder returns.

In connection with the Investor Day, Norwegian Cruise Line raised its full-year 2024 guidance across several metrics. The company raised its net yield growth expectations from 6..4% to 7.2%. Norwegian also raised its adjusted EBITDA expectations from $2.25 billion to $2.3 billion and its adjusted earnings guidance from $1.32 to $1.42 per share versus estimates of $1.35 per share, according to Benzinga Pro.

Norwegian Cruise Line also introduced new 2026 targets including adjusted earnings of approximately $2.45 per share, adjusted operational EBITDA margin of approximately 39%, a reduction of net leverage to the mid-four turn levels and record adjusted ROIC of 12%.

“We have continued to see very strong demand and record bookings. We are now thrilled to launch this financial plan by setting long term targets with increased 2024 guidance, putting ourselves on solid footing to enhance shareholder value in the coming years,” said Mark Kempa, CFO at Norwegian Cruise Line Holdings.

Norwegian’s new vision is bolstered by strategic initiatives under four pillars: People Excellence, Guest-centric Product, Long-term Growth Platform and Exceptional Performance. These pillars are expected to help transform the company’s culture, target investments towards offerings that guests value, capitalize on high growth opportunities and drive the company’s financial performance through operational excellence.

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NCLH Price Action: Norwegian shares were up 4.06% at $16.39 at the time of publication, according to Benzinga Pro.

Photo: LUM3N from Pixabay.