Norwegian Cruise Line falls on weak guidance despite Q2 earnings beat

Investing.com -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) reported second quarter results that exceeded profit expectations but issued disappointing full-year guidance, sending shares down 2% premarket following the announcement.

The cruise operator posted adjusted EPS of $0.48 for the second quarter, beating the analyst consensus of $0.38. However, revenue of $2.6 billion fell short of the $2.65 billion estimate, though it represented a 4.9% increase YoY.

The company now expects full-year 2026 adjusted EPS of approximately $1.50, below the analyst consensus of $1.67. Net yield on a constant currency basis is projected to decline approximately 5% for the full year versus 2025, reflecting ongoing execution challenges at the Norwegian Cruise Line brand.

The company cited softer demand at its Norwegian Cruise Line brand due to company-specific execution challenges and the ongoing conflict in the Middle East.

"Norwegian Cruise Line Holdings delivered a solid second quarter with profitability ahead of guidance," said John W. Chidsey, Chairperson and Chief Executive Officer. "While we are confident in the strength of our brands and the long-term benefits of the actions underway, we are still in the early stages of our turnaround."

For the third quarter, Norwegian expects adjusted EPS of $0.90 and adjusted EBITDA of $874 million. Net yield on a constant currency basis is projected to decline 8.9% versus the prior year period.

The company announced an additional $100 million in expected annualized run-rate savings, primarily from capital expenditures and selling, general and administrative expenses, through consolidation of technology vendors and other cost reductions. This adds to the $125 million in annualized savings announced last quarter.

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