Carnival, Royal Caribbean Shares Are Moving Higher: What's Going On?

Zinger Key Points
  • Norwegian Cruise Line raises its 2024 guidance and sets new 2026 financial targets.
  • Carnival and and Royal Caribbean shares are moving Monday following the announcement from Norwegian.

Cruise line stocks Carnival Corp CCL and Royal Caribbean Cruises Ltd RCL are moving Monday in the wake of Norwegian Cruise Line Holdings Ltd NCLH, which saw shares pop after the company raised its 2024 guidance and set new 2026 financial targets.

What Happened With NCLH: Norwegian Cruise Line announced a new strategy Monday in connection with its Investor Day. The company’s new “Charting The Course” strategy includes a refreshed vision, strategic initiatives and three-year financial and sustainability targets geared at enhancing shareholder returns. Norwegian shares were up nearly 7% at last check.

Norwegian Cruise Line raised its full-year 2024 net yield growth expectations from 6..4% to 7.2%. Norwegian also raised its full-year 2024 adjusted EBITDA expectations from $2.25 billion to $2.3 billion and full-year adjusted earnings guidance from $1.32 to $1.42 per share versus estimates of $1.35 per share, according to Benzinga Pro.

Norwegian Cruise Line also introduced new 2026 targets including adjusted earnings of approximately $2.45 per share, adjusted operational EBITDA margin of approximately 39%, a reduction of net leverage to the mid-four turn levels and record adjusted ROIC of 12%.

“We have continued to see very strong demand and record bookings. We are now thrilled to launch this financial plan by setting long term targets with increased 2024 guidance, putting ourselves on solid footing to enhance shareholder value in the coming years,” said Mark Kempa, CFO at Norwegian Cruise Line Holdings.

On Friday, Wells Fargo analyst Daniel Politzer maintained Carnival with an Overweight rating and raised the price target from $22 to $23. Politzer also maintained Royal Caribbean with an Overweight and raised the price target from $159 to $165.

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CCL, RCL Price Action: At publication time, Carnival shares were up 4.33% at $15.65 and Royal Caribbean shares were up 2.59% at $145.68, according to Benzinga Pro.

Photo: postcardtrip from Pixabay.

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