Norwegian Cruise Line’s Profit Outlook Disappoints Investors


Shares of cruise operators took a hit in morning trading following the release of Norwegian Cruise Line’s third-quarter profit outlook, which fell short of Wall Street analysts’ expectations.

Stock Downturn

Norwegian’s stock plummeted by almost 16% to $18.62, while Carnival and Royal Caribbean also experienced significant declines at over 6% and almost 3%, respectively.

Cost-Cutting Measures

Despite the disappointing profit outlook, Norwegian remains committed to cost reduction. Chief Financial Officer Mark Kempa revealed during a conference call that the company has enlisted the help of a consultant to facilitate this process.

Lower Than Expected Profit

Norwegian set a target of 70 cents per share for its adjusted profit in the third quarter. However, analysts were anticipating a higher figure of 80 cents per share, according to FactSet data.

Second Quarter Performance

In the second quarter, Norwegian exceeded market expectations with sales totaling $2.21 billion, surpassing estimates of $2.17 billion. Additionally, adjusted earnings per share reached 30 cents, beating Wall Street’s forecast of 26 cents per share.

Positive Outlook on Demand

Despite the setback, Norwegian executives expressed optimism about the future. They confirmed that demand for cruises remains robust and indicated strong bookings for 2024.

“We continue to witness unwavering consumer interest,” shared Chief Financial Officer Mark Kempa. “We anticipate this trend to persist.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Rivian Shares Surge, Analyst Downgrades to Neutral

Next Post

Electronic Arts Stock Drops After Revenue Forecast

Related Posts