Why Norwegian Cruise Line Shares Are Sinking Today

Norwegian Cruise Line Holdings Ltd NCLH shares are trading lower Tuesday after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

Norwegian reported second-quarter revenue of $1.2 billion, which missed the estimate of $1.26 billion, according to data from Benzinga Pro. Quarterly revenue was up significantly from the prior year's quarter due to the resumption of cruise voyages. 

Norwegian reported a second-quarter adjusted net loss of $1.14 per share, which missed the estimate for a loss of 86 cents per share.

"We are encouraged by the continued strong consumer demand we are experiencing which is reflected in our record pricing, accelerating booking volumes, especially for 2023 and beyond, and highest ever onboard revenue generation," said Frank Del Rio, president and CEO of Norwegian.

Norwegian expects third-quarter revenue to be between $1.5 billion and $1.6 billion versus the estimate of $1.88 billion. Occupancy is expected to be in the low 80% range.

The company said it expects to report a net loss in the third quarter as a result of the COVID-19 pandemic, the effects of the Russia-Ukraine conflict and current macroeconomic conditions.

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NCLH Price Action: Norwegian has a 52-week high of $23.90 and a 52-week low of $10.31.

The stock was down 8.5% at $12.38 at time of publication.

Photo: courtesy of Norwegian Cruise Line.