Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$13.60Last close (Oct 31, 2023)
Post-Earnings Price$13.57Open (Nov 1, 2023)
Price Change
$-0.03(-0.22%)
- Record Bookings and Higher Pricing for 2024: NCLH is in a record booked position for 2024, with bookings at higher prices, indicating strong demand and future revenue growth.
- Commitment to Pricing Discipline: The company is a firm believer in maintaining pricing discipline and avoiding discounting, even with additional capacity, which supports long-term yield growth and profitability.
- Ongoing Cost Reductions and Margin Improvement: NCLH has achieved three consecutive quarters of cost reductions and is implementing a permanent culture change to continuously improve margins while enhancing the customer experience.
- Potential revenue impact due to geopolitical tensions: Approximately 4% of NCLH's capacity for 2024 included visits to the Middle East, with 10% in Q4. The ongoing conflict in Israel may lead to cancellations and itinerary changes, affecting bookings and revenue.
- Cost pressures and inflationary headwinds: Despite achieving three consecutive quarters of cost reductions, NCLH acknowledges that inflation continues and there are headwinds related to dry docks for next year, which could impact margins and cost management efforts.
- Limited capacity growth in 2024: With no new ship deliveries until spring 2025, NCLH may face challenges in expanding capacity and revenue opportunities compared to peers with new ships in 2024. Marketing expenses may not significantly reduce, as they need to promote upcoming 2025 deliveries.