Shares of Norwegian Cruise Line (NYSE:NCLH) rose more than 13% on Thursday after the travel company reported stronger-than-expected profits.
Image source: Getty Images.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Efficiency gains
Norwegian’s revenue inched up less than 1% year over year to $2.9 billion in the third quarter. The cruise ship operator said an increase in last-minute bookings and higher onboard guest spending contributed to the gains.
The company’s expense-reduction initiatives helped to offset rising fuel costs related to conflict in the Middle East. Adjusted net cruise cost, excluding fuel, per capacity day improved by 2.2% to $152.
“We delivered third-quarter results that came in above guidance, all while continuing to strengthen our commercial capabilities, improve operating efficiency, and enhance the guest experience,” CEO John Chidsey said.
All told, Norwegian’s adjusted net income checked in at $514 million, or $1.12 per share. That bested Wall Street’s projections, which had called for per-share earnings of $0.93.
These profits, combined with asset sales, are enabling the travel company to strengthen its balance sheet by paying down debt, thereby reducing the risks for investors.
Raised guidance
These encouraging results and ongoing cost-saving trends prompted Norwegian to heighten its full-year financial targets. Management now projects adjusted net income of $789 million, or $1.70 per share. That’s up from a previous forecast of $700 million, or $1.50 per share.
Should you buy stock in Norwegian Cruise Line right now?
Before you buy stock in Norwegian Cruise Line, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Norwegian Cruise Line wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $334,308!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,323,413!*
Now, it’s worth noting Stock Advisor’s total average return is 897% — a market-crushing outperformance compared to 213% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
