NCLH - Should You Buy Norwegian Cruise Line Stock Down 20% From Its 52-Week High?
2024-06-27 06:15:00 ET
It's been a comeback story for Norwegian Cruise Line Holdings (NYSE: NCLH) . After facing near-extinction in the depths of the COVID-19 pandemic, the recovery of Norwegian, along with other cruise line stocks , accelerated in the past last year. Norwegian has taken advantage of pent-up travel demand, continued economic growth, and fleet upgrades to not only survive, but thrive, hitting all-time booking records in recent quarters. Shares of the company's stock rose early in the year, buoyed by economic optimism. In recent months, however, the shares are down nearly 20% from their 52-week highs, making this a great time to assess Norwegian for long-term value.
Norwegian's full-year 2023 earnings were stellar, with revenue up more than 30% from 2019 -- the last full year before the pandemic lockdowns. While such an increase over four years may not seem impressive, for a cruise operator like Norwegian, this represents not only a return to full strength, but solid growth beyond the last "normal" year before the pandemic. Remember that cruising came to a total halt for 15 months, so Norwegian was without revenue for more than a full year. And, of course, when cruising opened up again, it was only a slow trickle at first. To grow revenue by 32% after a catastrophe like the pandemic is worth celebrating.
Norwegian reported excellent financial results for the first quarter of its 2024 fiscal year, beating previously issued projections across a range of key performance metrics. First quarter revenue rose 20% to $2.2 billion, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) almost doubled while adjusted earnings per share (EPS) rose 116%.
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Should You Buy Norwegian Cruise Line Stock Down 20% From Its 52-Week High?