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Norwegian Cruise Line Holdings lifts 2024 guidance on strong demand

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'