Norwegian Cruise Line falls on weak guidance despite Q1 beat

Investing.com -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) reported first-quarter results that exceeded earnings expectations but fell short on revenue, while lowering its full-year outlook due to geopolitical headwinds and softer demand, sending shares down 6.3% premarket.

The cruise operator posted adjusted EPS of $0.23 for the first quarter, beating the analyst consensus of $0.15 by $0.08. However, revenue of $2.3 billion missed estimates of $2.36 billion, though it represented a 10% increase from the prior year period.

The company guided full-year 2026 adjusted EPS of $1.45 to $1.79, with a midpoint of $1.62 well below the analyst consensus of $2.12. For the second quarter, the company expects adjusted EPS of approximately $0.38.

"We delivered strong first quarter results, and more importantly we have already begun taking decisive actions to strengthen execution and accountability across the company, which will enhance results over the longer term," said John W. Chidsey, Chairperson and Chief Executive Officer. "During the quarter, we acted with urgency to simplify, optimize, and streamline the organization, including executing SG&A savings initiatives totaling $125 million in expected run rate savings."

The company cited disruptions in the Middle East, including higher fuel expenses and signs of softer demand as consumers reevaluate travel plans, particularly to Europe.

Norwegian noted it entered 2026 behind its targeted booking curve, and these headwinds have hindered its ability to accelerate bookings. Recent events related to the conflict in the Middle East have impacted bookings across all three brands, especially in Europe during the summer season.

First quarter adjusted EBITDA increased 18% to $533 million, exceeding guidance of approximately $515 million. For the full year 2026, the company expects adjusted EBITDA of $2.48 billion to $2.64 billion. Net yield on a constant currency basis is expected to decline 3% to 5% for the full year versus 2025.

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