What happened
Shares of Norwegian Cruise Line Holdings (NCLH -1.73%) jumped as much as 10% Monday after reporting better-than-expected first-quarter results. The stock remained higher by 8.5% at 2:15 p.m. ET. Today's bounce brings returns from the cruise operator's stock to almost 20% year to date.
So what
The quarterly period marked a sharp recovery for the business, with revenue of $1.8 billion compared to just $522 million in the prior-year period. Analysts expected $1.7 billion in revenue and a loss of $0.42 per share, according to FactSet Research.
Norwegian reported an adjusted loss of $0.30 per share, but that outperformance wasn't the only reason the stock jumped. Investors liked what the company said about its second quarter, as well as the full-year profit outlook.
Image source: Getty Images.
Now what
The cruise operator raised its previous adjusted earnings per share estimate of $0.70 for 2023 to $0.75. That is versus a comparable loss of $4.64 in 2022. Management noted that the first-quarter outperformance gave it confidence to boost full-year guidance. It stated the successful quarterly period was the result of "the phased ramp-up of cruise voyages." It added that its cumulative bookings for the rest of 2023 "continues to be at record levels and at higher pricing."
As previously announced, Norwegian CEO Frank Del Rio will be stepping down on June 30. The industry veteran has led the company since 2015 and will remain as an advisor through 2025. Harry J. Sommer, a 15-year veteran of the company and head of the namesake cruise line segment, will take over as the corporate CEO beginning July 1.
