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Norwegian Cruise forecasts upbeat first-quarter profit on robust demand
Global Banking & Finance Review®
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(Reuters) – Norwegian Cruise Line Holdings forecast a first-quarter profit on Tuesday betting on higher ticket prices and steady demand in the U.S. for cruises to the Caribbean and Europe.
(Reuters) – Norwegian Cruise Line Holdings forecast a first-quarter profit on Tuesday betting on higher ticket prices and steady demand in the U.S. for cruises to the Caribbean and Europe.
The company’s shares rose 5.5% to $16.80 in premarket trading.
Cruise operators are now experiencing record levels of bookings in 2024 as travelers look to spend on novel experiences and are choosing cruises over land-based alternatives such as hotels or theme parks.
This has given companies including Carnival Corp and Royal Caribbean more room to hike prices on their itineraries and offset still-high labor and fuel costs.
Norwegian Cruise forecast an adjusted profit of 12 cents per share for the first quarter, compared with analysts’ estimates of a loss of 20 cents per share, according to LSEG data.
The company’s fourth-quarter revenue rose to $1.99 billion from $1.52 billion a year earlier. Analysts had expected $1.97 billion.
(Reporting by Granth Vanaik and Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)
Adjusted profits refer to a company's earnings that have been modified to exclude certain one-time expenses or revenues, providing a clearer picture of ongoing operational performance.
Cruise demand refers to the interest and willingness of consumers to book cruise vacations. It is influenced by factors such as pricing, travel trends, and consumer preferences for leisure activities.
Ticket prices are the costs associated with purchasing a ticket for travel or entertainment, such as cruises. These prices can vary based on demand, seasonality, and the type of experience offered.
Revenue growth is the increase in a company's sales over a specific period, indicating its ability to expand its business and increase its market share.
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