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On Wednesday, Susquehanna remained neutral on Norwegian Cruise Line Holdings (NYSE:), but raised its price target to $21 from $20. The company emphasized the cruise line's intense focus on cost reduction, as evidenced by its fiscal year 2024 unit price guidance, which excludes the impact of dry dock days.
The analyst noted expectations for a detailed update on Norwegian Cruise Line's business plan, expected to be announced at an investor day in May. It will be interesting to see whether the company continues to find opportunities to reduce traditional costs.
Examples delivered over the past approximately 18 months, such as reduced cabin turndowns, workforce reductions, menu redesigns, and increased fuel efficiency, demonstrate cost savings that can be achieved without negatively impacting brand value. It raises questions about scope.
Norwegian Cruise Line reported fourth-quarter adjusted earnings per share (EPS) of ($0.18), compared to analyst estimates of ($0.15), consensus ($0.12), and December guidance ($0.15). It didn't even reach US$. ). The company's adjusted EBITDA for the quarter was approximately $360 million, in line with guidance provided in December.
The December net per diem guide predicts a 15-16% year-on-year increase versus the actually reported 14% increase, reflecting lower-than-expected revenue and other income from foreign exchange/ The main reason was that expenditures exceeded expectations. He contributes to the EPS shortfall compared to analysts' models.
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