Cruise Operator Norwegian Predicts Loss In Q4 As New Waves Of Disruptions Emerge

Norwegian Cruise Line Holdings Ltd NCLH reported third-quarter FY23 sales growth of 57% year-on-year to $2.536 billion, beating the analyst consensus of $2.529 billion.

Total revenue was up 33% versus 2019, with total revenue per Passenger Cruise Day up approximately 16% as reported and in constant currency.

Adjusted EPS of $0.76 beat the consensus of $0.69.

Occupancy reached approximately 106.1% in the quarter, in line with guidance.

Total cruise operating expenses were $1.48 billion versus $1.24 billion last year.

The company reported an operating income of $523.32 million with an operating margin of 20.6% versus a loss of $(185.23) million last year.

The company held $681.56 million in cash and equivalents as of September 30, 2023. Operating cash flow for nine months totaled $1.75 billion.

Adjusted EBITDA for the quarter was $752.07 million, compared to $28.10 million a year ago. The margin was 30%, vs 1.7% in 3Q22.     

4Q23 Outlook: NCLH expects Adjusted EPS of ~$(0.15) vs consensus of $0.01; and Adjusted EBITDA of ~$360 million.

FY23 Outlook: NCLH expects adjusted EPS of about $0.73 (prior view $0.80) against the consensus of $0.79.

 For FY23, the company expects Occupancy to average 102.6%, slightly lower than prior guidance due to temporary disruptions impacting the fourth quarter.

Price Action: NCLH shares are trading lower by 3.13% at $13.17 on the last check Wednesday.