Yahoo Finance Norwegian Cruise Falls as Raised Profit Outlook Fails to Impress
(Bloomberg) -- Norwegian Cruise Line Holdings Ltd. plunged after its improved profit outlook disappointed investors’ high expectations amid an industry boom that’s caused record demand for sailings.
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Earnings for this year will now be about $1.32 a share, the company said in a statement. That was up from its prior outlook of $1.23 a share and above the average analyst expectation of $1.28, but failed to impress zealous shareholders wanting more from surging ticket sales.
Shares fell as much as 9.46% as of 9:50 in New York, extending this year’s decline to about 14%. Royal Caribbean Cruises Ltd. and Carnival Corp. also fell.
Record post-pandemic demand for cruises has ratcheted up expectations. Royal Caribbean, the largest ship operator by market value, last week raised its full-year profit outlook above even the highest Wall Street estimate tracked by Bloomberg.
“We view this as a solid update, but not as strong as peer Royal Caribbean’s first-quarter update, nor what we believe were elevated expectations heading into the print,” Barclays analyst Brandt Montour wrote in a note Wednesday morning.
Norwegian’s revenue grew 20% in the first quarter to $2.22 billion, falling short of analysts’ $2.19 billion projection. Earnings per share excluding some items was 16 cents, beating an expected 11 cents.
Only a third of analysts covering the cruise operator recommend buying the stock, compared to at least three quarters for both Royal Caribbean and Carnival.
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