Norwegian Cruise's stock falls after revenue missed, despite record bookings
By Tomi Kilgore
Passenger ticket revenue jumped but missed expectations while onboard spending rose more than forecast
Shares of Norwegian Cruise Line Holdings Ltd. slumped Wednesday, after the cruise operator beat first-quarter profit expectations and raised its full-year outlook amid continued record demand, but missed revenue expectations for the first time in seven quarters.
"We kicked off 2024 with impressive momentum, with record bookings in the first quarter propelling us to continue our all-time high booked position and an unprecedented level of advance ticket sales," said Chief Executive Harry Sommer.
Meanwhile, the stock (NCLH) dove 8.8% toward a nine-week low in morning trading.
The company swung to net income of $17.35 million, or 4 cents a share, from a loss of $159.3 million, or 38 cents a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of 16 cents beat the FactSet consensus of 9 cents.
Revenue grew 20.2% to $2.19 billion, just below the FactSet consensus of $2.23 billion. That miss snapped a six-quarter streak of revenue beats, according to available FactSet data.
Passenger ticket revenue rose 20.8% to $1.46 billion, below expectations of $1.51 billion, and onboard and other revenue increased 19.3% to $731.4 million to beat expectations of $711.1 million.
The company said it continues to experience "healthy consumer demand," leading to a record booked position for the next 12 months, with the advance ticket sales balance ending the quarter at a record $3.8 billion.
Occupancy was 104.6% for the first quarter, and is expected to average 105.1% for 2024.
Also for 2024, the company raised its full-year adjusted EPS outlook to $1.32 from approximately $1.23, as "exceptional demand" across all brands offset redeployed voyages related to the Middle East conflict and Red Sea disruptions.
The stock has dropped 13.9% year to date, while the Consumer Discretionary Select Sector SPDR ETF XLY has slipped 1.8% and the S&P 500 has tacked on 5.3%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-01-24 0958ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks