BUZZ-Norwegian Cruise Line plunges after Q1 rev miss

Reuters05-01

** Shares in Norwegian Cruise Line Holdings down 14.4% on Wednesday, hitting lowest point since late February, and on track for their biggest daily pct loss since Sept 2022 after Q1 rev disappoints

** Cruise operator reported Q1 rev of $2.19 bln vs Wall Street's mean expectation for $2.24 bln while its adj EPS of $0.16 was ahead of consensus expectation of $0.11, according to LSEG

** Truist analyst Patrick Scholes kept his 'hold' rating but pointed to 1Q results as only “slightly ahead of expectations” driven primarily by costs, margins as revenue per passenger cruise day of $239 missed consensus estimate of $248

** NCLH last traded at $16.20 vs median PT of $20, as per LSEG which shows ratings from 22 analysts and breakdown of 4 'strong buy,' 3 'buy,' 14 'hold' and 1 'sell'

** YTD, stock now down ~19% vs ~0.6% gain for the S&P 500 consumer discretionary sector

** Shares in rival Royal Caribbean Cruises were down about 3% on the day though Scholes points out that compared with NCLH's mixed results, RCL "has set a very high bar with several massive beat & raises this year"

** Rival Carnival Corp's stock was off 3.5% on the session

** This as upscale ocean and river cruise ship operator Viking Holdings poised to debut on NYSE on Wednesday after its IPO priced at $24, within the marketed range

(Reporting By Sinéad Carew)

((sinead.carew@thomsonreuters.com; +13322191897;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment