Why Norwegian Cruise Line Shares Are Sinking

Norwegian Cruise Line Holdings Ltd NCLH shares are trading lower Tuesday morning after the company reported a worse-than-expected loss in the fourth quarter.

What Happened: Norwegian reported fourth-quarter revenue of $1.52 billion, which beat average analyst estimates of $1.5 billion. The company reported a quarterly loss of $1.04 per share, which missed estimates for a loss of 85 cents per share. 

Occupancy improved to 87% during the quarter and total revenue per passenger cruise day jumped 23% compared to 2019.

"We are now squarely focused on the future and are taking deliberate and strategic actions to best position the Company for its next chapter ... We continue to pursue all opportunities to capitalize on the healthy demand we are experiencing, especially during this important WAVE season," said Frank Del Rio, president and CEO of Norwegian.

Occupancy is expected to average approximately 100% of 2019 levels in the first quarter and reach historical occupancy levels in the second quarter.

Norwegian said it entered 2023 with a record cumulative booked position of approximately 62% as booking volumes accelerated in recent months.

The company ended the year with $13.6 billion in debt and $1.9 billion in total liquidity. 

"We are focused on identifying new and incremental opportunities to reinforce our solid foundation and become an even stronger and more nimble organization, while continuing to provide unparalleled vacation experiences for our valued guests," CFO Mark Kempa added.

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NCLH Price Action: Norwegian has a 52-week high of $23.43 and a 52-week low of $10.31.

The stock was down 4.18% at $15.81 at time of publication, according to Benzinga Pro.

Photo: Susann Mielke from Pixabay.