Key Takeaways

Norwegian Cruise Line Holdings ( NCLH ) shares fell more than 5%, pulling back after a strong year of performance.

Norwegian released its latest quarterly financial results on Thursday, turning in numbers that met or exceeded Wall Street’s expectations and forecasting further growth in the year ahead. Its shares have shot up nearly 25% over the past 12 months, perhaps prompting investor caution.

Shares of other cruise operators, including Royal Caribbean Group ( RCL ) and Carnival ( CCL ), also fell, as the S&P 500 slid more than 1.5%.

The company earned a record amount for the quarter ended Dec. 31. Norwegian reported $468.2 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) , a 30% increase from the same period last year and about 9% above the $430.1 million consensus estimate among analysts polled by Visible Alpha.

Revenue grew 6% year-over-year to $2.1 billion—on par with analysts’ expectations. Norwegian's fourth-quarter adjusted earnings per share (EPS) were 52 cents, well above the consensus estimate of 6 cents.

For the full year, the company posted adjusted EPS of $1.89, up from 39 cents in 2023 and above the $1.41 consensus estimate. The company is projecting it will finish 2025 with adjusted EPS of $2.05.

Bookings for the next 12 months are at “optimal” levels, CEO Harry Sommer said. The cruise operator expects to end the full year with $1.07 billion in adjusted net income, above the $910 million reported for the latest year.

The CEO said the company was eager to introduce two new ships in 2025, including the Allura, a more upscale vessel, and the Norwegian Aqua. The latter ship will host a tribute show to the musician Prince and has an attraction that combines aspects of a rollercoaster and water slide, Sommer said on the earnings conference call .

Read the original article on Investopedia