Why Is Norwegian Cruise Line Stock Sinking Today?
Portfolio Pulse from Akanksha Bakshi
Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) reported a 20.3% year-on-year sales growth to $2.191 billion in Q1 fiscal 2024, missing the consensus of $2.24 billion. Operating income and adjusted EPS both improved, with the latter beating consensus. Adjusted EBITDA nearly doubled, and occupancy was over 100%. Despite these positive results, NCLH's stock is down 12.8% due to the sales miss. The company raised its full-year 2024 guidance for key metrics and expects higher occupancy and net yield.

May 01, 2024 | 3:11 pm
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Norwegian Cruise Line reported a 20.3% increase in sales but missed consensus estimates, with a significant stock price drop of 12.8% despite beating adjusted EPS consensus and raising 2024 guidance.
The stock price drop of 12.8% indicates a negative short-term impact, likely due to the sales miss overshadowing the positive earnings report and raised guidance. The significant improvement in operating income, adjusted EPS, and adjusted EBITDA, along with the raised full-year guidance, suggests strong operational performance but was not enough to prevent the stock price decline.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100