Adjusted net income was $232.7m, or $1.02 per share, a nickel above the Wall Street forecast and higher than guidance of 95 cents and last year's 85 cents. GAAP net income was $198.5m, or 87 cents per share, up from $145.2m, or 64 cents, in the prior year.
Total revenue increased more than 13% to $1.3bn, mainly due to more capacity days as a result of fewer drydocks plus the addition of Regent Seven Seas Cruises' Seven Seas Explorer and Oceania Cruises’ Sirena in 2016, and stronger ticket pricing and higher on-board and other revenue.
Adjusted net yield was up 8.1% in constant currency and 7.2% as reported.
NCLH expects to generate record earnings for full year 2017, surpassing the high end of its prior guidance.
'Positive consumer sentiment in North American and key international markets has resulted in a robust booking environment that continues to be one of the strongest in recent history,' NCLH president and ceo Frank Del Rio said. Combined with the company's targeted strategic revenue initiatives, this drove second quarter revenue and yield growth well above expectations.
Del Rio said all three NCLH brands—Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises—benefited from strength across their respective markets and contributed to the second quarter earnings beat.
Adjusted net cruise cost excluding fuel per capacity day increased 2.7% in constant currency and 2.6% as reported primarily due to an increase in marketing, general and administrative expenses partially offset by lower other cruise operating expenses.
'We are pleased to report strong booking trends across all markets for the back half of 2017, where pricing and occupancy are now up mid-single digits over prior year,' evp and cfo Wendy Beck said. 'Strong booking volumes and firm pricing have benefited our booked business for the next four quarters, contributing to the increase of our 2017 full year outlook and further solidifying our expectation for strong earnings growth.'
Full year adjusted net yield growth guidance in constant currency is up 150 basis points to 4.25% from 2.75%. Each 1% change in adjusted net yield would impact EPS by 10 cents per share for the remaining quarters.
Full-year adjusted EPS is now expected in the range of $3.93 to $4.03, 14 cents higher than the previous guidance of $3.79 to $3.89.
For Q3, NCLH expects adjusted EPS of approximately $1.83, 3 cents lower than the consensus forecast.
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