Norwegian Cruise Line NCLH Stock Forecast and Price Target 2024

Table Of Content

• NORWEGIAN CRUISE LINE UNVEILS ALL-NEW CULINARY EXPERIENCES TO DEBUT ABOARD NORWEGIAN AQUA
• Business Surpasses Pre-Pandemic Levels
• Travel Services Industry Comparables
• Norwegian Cruise Line Holdings to Hold Conference Call on Fourth Quarter and Full Year 2023 Financial Results
• Why Norwegian Cruise Line (NCLH) is a Top Value Stock for the Long-Term
• Time to Invest in This Growing Corner of the Travel Industry?

We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data.

NORWEGIAN CRUISE LINE UNVEILS ALL-NEW CULINARY EXPERIENCES TO DEBUT ABOARD NORWEGIAN AQUA

EBITDA adjusted for other income (expense), net and other supplemental adjustments. The SailSAFE Global Health and Wellness Council (“Council”) was established by Norwegian Cruise Line Holdings Ltd. to provide expert advice on the implementation, compliance with and continuous improvement of the Company’s SailSAFE health and safety program. The Council will complement the work of the Healthy Sail Panel and continuously evaluate and identify ways to improve health and safety standards, utilizing the best technologies and information available. The Council is cross-functional, diverse and extensively experienced, comprised of four experts at the forefront of their fields and led by Chairman of the Council, Dr. Scott Gottlieb, former commissioner of the U.S. (1) USGC derivatives were de-designated for accounting purposes in the fourth quarter of 2020 and first quarter of 2021. Both our USGC and Brent derivatives represent economic hedges and may be designated or re-designated as accounting hedges in the future.

Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note - Yahoo Finance

Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note.

Posted: Wed, 21 Feb 2024 08:00:00 GMT [source]

Business Surpasses Pre-Pandemic Levels

See “Terminology” for the definitions of these and other non-GAAP financial measures. We utilize Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to manage our business on a day-to-day basis. In measuring our ability to control costs in a manner that positively impacts net income (loss), we believe changes in Net Cruise Cost and Adjusted Net Cruise Cost Excluding Fuel to be the most relevant indicators of our performance. As a result of our voluntary suspension of sailings from March 2020 until July 2021, we did not have any Capacity Days during the suspension period. Accordingly, we have not presented herein per Capacity Day data for the three months or year ended December 31, 2021 or December 31, 2020. Total revenue decreased 49.4% to $0.6 billion in 2021 compared to $1.3 billion in 2020.

Travel Services Industry Comparables

Booked position for each quarter compared to the comparable quarter in 2019 improves sequentially through the year. Booking trends for 2023 demonstrate continued strong demand for sailings in the medium and longer term with booked position and pricing meaningfully higher and at record levels when compared to bookings for 2020 in 2019. Coronavirus-induced changes in consumer behavior with regard to travel had altered the economic performance of Norwegian Cruise Line Holdings, affecting its ability to generate excess economic rents. However, as consumers returned to cruising after the 15-month sailing halt that ended in July 2021, they regained their appetite for travel, bolstered by the value proposition the holiday provides.

Norwegian Cruise Line CEO Harry Sommer expressed that 2023 was a landmark year for the company. Consumer demand surged back to return to full ships and dull-year profitability. Sommer summed it up, "In conclusion, our strong top-line growth, combined with our continued focus on cost and margin enhancements, are expected to drive 2024 adjusted EBITDA and adjusted EPS to grow by 18% and 76%, respectively, over last year."

Here's Why Norwegian Cruise Line (NCLH) Fell More Than Broader Market - Yahoo Finance

Here's Why Norwegian Cruise Line (NCLH) Fell More Than Broader Market.

Posted: Wed, 17 Jan 2024 08:00:00 GMT [source]

You are encouraged to evaluate each adjustment used in calculating our non-GAAP financial measures and the reasons we consider our non-GAAP financial measures appropriate for supplemental analysis. In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to the adjustments in our presentation. Our non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of our non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our non-GAAP financial measures may not be comparable to other companies.

Time to Invest in This Growing Corner of the Travel Industry?

According to 15 analysts, the average rating for NCLH stock is "Hold." The 12-month stock price forecast is $20.07, which is an increase of 9.73% from the latest price. Norwegian Cruise Line Holdings unveils plans for eight new vessels, expanding its fleet with nearly 25,000 additional berths across three brands. The company also initiates construction of a multi-ship pier at Great Stirrup Cay, enhancing its Caribbean port infrastructure. Norwegian Cruise Line Holdings Ltd. engages in the provision of cruise travel services. It provides cruise experiences for travelers with itineraries in Europe, Asia, Australia, New Zealand, South America, Africa, Canada, Bermuda, Caribbean, Alaska and Hawaii.

In addition, management uses Adjusted EPS as a performance measure for our incentive compensation during normal operations. The amounts excluded in the presentation of these non-GAAP financial measures may vary from period to period; accordingly, our presentation of Adjusted Net Loss and Adjusted EPS may not be indicative of future adjustments or results. For example, for the year ended December 31, 2020, we incurred $1.6 billion related to impairment losses. We included this as an adjustment in the reconciliation of Adjusted Net Loss since the expenses are not representative of our day-to-day operations; however, this adjustment did not occur and is not included in the comparative period presented within this release. We believe that presenting these non-GAAP measures on both a reported and Constant Currency basis is useful in providing a more comprehensive view of trends in our business.

Norwegian Cruise Line (NCLH) Q4 2023 Earnings Call Transcript

Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt. Berths available for sale multiplied by the number of cruise days for the period for ships in service. Fuel price per metric ton, net of hedges, increased to $737 from $574 in 2020.

The Company's monthly average cash burn for the fourth quarter of 2021 was approximately $345 million, slightly below the prior estimate of approximately $350 million. Looking ahead, the Company expects first quarter 2022 monthly average cash burn to increase to approximately $390 million driven by the continued phased relaunch of additional vessels. This cash burn rate does not include expected cash inflows from new and existing bookings or contribution from ships that have re-entered service. As a result of Omicron-related disruptions, the Company now expects to have 85% of its capacity operating by the end of the first quarter of 2022 with the full fleet expected to be back in operation during the early part of the second quarter of 2022. In addition, the Company expects to reach a critical inflection point during the second quarter of 2022 with net cash provided by operating activities turning positive. Based on the current booked position and trajectory, the Company expects to have positive Adjusted Net Income1 for the second half of 2022.

For the full year 2024, the company expects an adjusted profit of about $635 million, or $1.23 per share. Norwegian Cruise Line (NCLH) rises on 4Q revenue and 1Q upbeat guidance. NCLH's incredibly strong results highlight the strength in its brand and the cruise industry, notes Ivan Feinseth. As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics. Operating a successful cruise requires significant planning and resources, but these three companies have managed to take over 80% of the $30 billion market. Shares of the cruise line jumped on expectations of falling interest rates and a strong 2024 for the cruise industry.

The following table provides amounts hedged and price per barrel of heavy fuel oil (“HFO”) which is hedged utilizing U.S. Gulf Coast 3% (“USGC”), Brent and marine gas oil (“MGO”) which is hedged utilizing Gasoil. The following reflects the Company’s expectations regarding fuel consumption and pricing, along with accompanying sensitivities. GAAP net loss was $(1.6) billion or EPS of $(4.01) compared to net loss of $(0.7) billion or EPS of $(2.51) in the prior year.

Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt.

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999. Industry improvements, and stronger bookings make Carnival a strong buy, especially on the most recent, unsustainable dip. While the stock is slightly overbought at an all-time high, it could push even higher with demand showing no signs of slowing. NCLH displays a symmetrical triangle pattern on its daily candlestick chart.