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

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05-01-24 0958ET

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