Norwegian Cruise Line's Q1 revenue misses estimates

Overview

• US cruise operator's Q1 revenue rose 10% yr/yr but missed analyst expectations

• Adjusted EPS for Q1 more than doubled and beat analyst expectations

• Company lowered 2026 adjusted EPS guidance due to Middle East disruptions and softer demand

Outlook

• Norwegian lowered 2026 full-year Adjusted EPS guidance to $1.45-$1.79

• Company expects Q2 2026 Adjusted EPS of about $0.38

• Company sees 2026 Net Yield down 3%-5% and Adjusted EBITDA at $2.48-$2.64 bln

Result Drivers

• CAPACITY GROWTH - Q1 revenue growth was driven by increased Capacity Days

• COST CONTROL - SG&A savings initiatives and lower cruise costs per Capacity Day supported margin improvement

• NET YIELD PRESSURE - Net Yield decreased approximately 0.3% on an as reported basis, reflecting some pressure on pricing

Company press release: ID:nGNX7SznKG

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Norwegian Cruise Line Holdings Ltd is $25.00, about 32.9% above its May 1 closing price of $18.81

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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