Norwegian Cruise Line Holdings made headlines on Tuesday by announcing its first profitable year since 2019, with fourth-quarter losses significantly reduced. The company’s positive performance led to a surge in its stock price, mirroring the upward trend seen in shares of Royal Caribbean and Carnival.
Norwegian experienced robust growth in ticket demand, and projected and optimistic forecast for 2024. With total revenue reaching $8.55 billion for the year—a notable 32% increase from 2019—Norwegian reported a net income of $166.2 million, a stark contrast to the $2.27 billion loss in 2022.
Boasting a remarkable 102.9% occupancy rate for the year, Norwegian witnessed a 17% surge in total revenue per passenger per day compared to pre-pandemic levels. Despite the cancellation of cruises through the Middle East due to regional unrest, Norwegian maintained strong demand, with fourth-quarter occupancy dipping only slightly to 99.2%.
CEO Harry Sommer expressed pride in the company’s achievements, highlighting the delivery of three new ships in 2023—an unprecedented feat in Norwegian’s 57-year history. Sommer emphasized Norwegian’s commitment to innovation and guest satisfaction.
Looking ahead, Norwegian remains optimistic, reporting record-high booking levels fueled by robust consumer demand. The company anticipates an adjusted profit of approximately $635 million for 2024, translating to $1.23 per share—a figure exceeding analysts’ expectations of $1.21 per share, according to LSEG polls.
The positive momentum extended to other cruise companies, including Royal Caribbean Cruises and Carnival Corp, whose shares also experienced an uptick on Tuesday morning.
After reviewing the charts of all 3 major cruise lines, Royal Caribbean Cruises (RCL) is shown below.
As you can see, I have an alert set for the mid-$135 area which coincides with the all-time high set back before the pandemic started.
Any move above this high for RCL would likely produce a low-risk entry for additional gains in this industry.
