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Norwegian Cruise Line Holdings lifts 2024 guidance on strong demand

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Citing strong demand and an improved outlook for the year, Norwegian Cruise Line Holdings raised its 2024 earnings per share guidance to a range of $1.32 to $1.42.

This is up from the $1.32 projection on May 1, which was an increase from February's $1.23. Wall Street's current consensus estimate is $1.35.

NCLH also raised expectations for full-year net yield growth from 6.4% to 7.2% and adjusted EBITDA from $2.25b to $2.3bn.

New 'Charting the Course' strategy

At its ongoing Investor Day in the New Stock Exchange, NCLH also outlined a new 'Charting the Course' strategy, which includes a refreshed vision; strategic initiatives centered around four pillars encompassing people, product, growth platform and performance; and three-year financial and sustainability targets geared at enhancing shareholder returns.

New targets by end 2026

By the end of 2026, targets include adjusted operational EBITDA margin of approximately 39%, approaching historical levels.

NCLH also projects adjusted EPS of approximately $2.45, representing a two-year compound annual growth rate from 2024 to 2026 of over 30%.

The company intends to reduce net leverage to the mid-four turn levels, continuing its commitment to strengthening its balance sheet.

NCLH further aims for record adjusted return on invested capital of 12%, exceeding pre-2020 levels.

And the company renewed its commitment to a 10% greenhouse gas intensity reduction from a 2019 baseline level.

See also 'Harry Sommer outlines NCLH's "bold vision" and culture change,'  'How NCLH reined in costs for dining, shows, housekeeping, purchasing' and 'David Herrera shares NCL's top-line opportunities'