12:28 PM EDT, 05/20/2024 (MT Newswires) -- Norwegian Cruise Line ( NCLH ) lifted its full-year earnings outlook on Monday amid robust demand conditions, while the cruise operator unveiled financial targets for 2026 as part of a new strategy to enhance shareholder returns.

The company said it now expects adjusted earnings of about $1.42 per share for 2024, up from the previous guidance it issued earlier in the month for $1.32. The current consensus among analysts on Capital IQ is for normalized EPS of $1.33. Norwegian Cruise Line's ( NCLH ) shares gained 8.5% in midday trading.

Adjusted earnings before interest, taxes, depreciation and amortization are pegged at $2.3 billion versus prior projections of $2.25 billion. The company raised its expectations of net yield growth for the ongoing year to 7.2% from 6.4%. It continues to forecast occupancy of roughly 105.1%. The company describes net yield as adjusted gross margin per capacity day.

"We have continued to see very strong demand and record bookings," Chief Financial Officer Mark Kempa said in a statement. "We are now thrilled to launch this financial plan by setting long term targets with increased 2024 guidance, putting ourselves on solid footing to enhance shareholder value in the coming years."

In an emailed client note, Truist Securities said it doesn't believe "anything has materially accelerated" in Norwegian Cruise Line's ( NCLH ) booking and price trends since it reported first-quarter results on May 1. The brokerage suspects that the cruise operator kept "some EPS upside in their back pocket" to issue a raise at its May 20 investor day.

The company's three-year "charting the course" initiative will focus on people, guest-centric products, long-term growth platform and performance, it said. Under the strategy's financial objectives, the company aims to report adjusted EPS of about $2.45 by 2026, representing a two-year compound annual growth rate of more than 30%. The Street is looking for normalized EPS of $2.25 in 2026.

Norwegian Cruise Line ( NCLH ) is seeking to achieve an adjusted operational EBITDA margin of about 39% by the end of 2026 and reduce greenhouse gas intensity by 10% from 2019 levels.

"We are thrilled to begin charting our new course with a transformational strategy that will guide our plans for future growth," according to Chief Executive Harry Sommer.

Price: 17.16, Change: +1.41, Percent Change: +8.92