Why OneSpaWorld Stock Is Up Today

On Wednesday, OneSpaWorld (OSW) shares experienced a significant surge of 12.50% after the health and wellness center operator announced a 25% increase in its dividend. The company's revenue for the third quarter rose 7% year over year to $276.5 million, driven by an expansion of its fleet due to newbuilds and higher guest spending.

OneSpaWorld offers rejuvenation, fitness, and aesthetic services on cruise ships and at resorts, operating health and wellness centers on 207 ships as of the end of the quarter, up from 204 in the same period last year. The company's asset-light business model is proving to be highly profitable, with adjusted net income jumping 13% to $34.8 million, or $0.34 per share, surpassing Wall Street's estimates of $0.31 per share.

This positive performance led OneSpaWorld to revise its full-year financial guidance, anticipating revenue growth of around 10% to over $1 billion and adjusted EBITDA increasing by 13% to approximately $139 million. The company's enhanced profitability has enabled it to reduce debt and reward shareholders through share repurchases and an increased dividend.

OneSpaWorld has announced a $100 million stock buyback program and raised its quarterly dividend by 25% to $0.0625 per share, resulting in a forward yield of nearly 1%.