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Cruise Stocks Surge

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Shares of cruise stocks saw a significant surge following the release of positive quarterly results from Norwegian Cruise Line Holdings.

Stock Performance

  • Norwegian’s share price soared over 10% to $17.57 in premarket trading.
  • Carnival stock witnessed a 6% increase.
  • Royal Caribbean shares climbed nearly 4%.

Relative Performance

While Norwegian struggled to recover from the pandemic compared to its competitors over the past year, Carnival and Royal Caribbean stocks experienced substantial growth of almost 37% and 66%, respectively.

Positive Outlook

Norwegian’s announcement of an anticipated adjusted profit for the current quarter was the catalyst for the sector-wide rally on Tuesday, beating Wall Street analysts’ expectations of a loss.

Consumer Demand and Financials

  • The company reported a record booked position for the year, attributing it to strong consumer demand for travel.
  • Norwegian noted robust pricing and onboard spending, showcasing consumers’ willingness to splurge.
  • Advance ticket sales for 2023 amounted to $3.2 billion, marking a 56% increase from 2019.

Cost Management

Chief Financial Officer Mark Kempa highlighted the progress made in streamlining the company’s cost base in the previous year, addressing concerns of higher costs among Norwegian investors.

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