Norwegian Cruise Line Holdings shares fell in premarket trading in New York after the cruise ship operator lowered its full-year 2026 outlook, as disruptions in the Middle East, higher diesel costs, and softer travel demand in Europe weighed on first-quarter bookings.
"The Company is experiencing headwinds related to disruptions in the Middle East, including higher fuel expense and signs of softer demand as consumers reevaluate travel plans, particularly to Europe," Norwegian Cruise wrote in apress release.
It continued, "As previously noted, the Company entered 2026 behind its targeted booking curve, and these headwinds have hindered the Company's ability to accelerate bookings and close that gap," adding, "These external pressures come as the Company continues to enhance its revenue management system and improve execution, resulting in additional pressure on the business and a reduction in its full-year guidance."
Norwegian Cruise now expects adjusted EPS of $1.45 to $1.79, down from its prior forecast of $2.38 and well below the Bloomberg Consensus estimate. The downgraded outlook reflects, as management noted above, higher fuel prices, weaker European travel demand, and softer-than-expected bookings across all three of its brands.
Here's a snapshot of the full-year outlook (courtesy of Bloomberg):
Sees adjusted EPS $1.45 to $1.79, saw about $2.38, estimate $2.13
Sees adjusted Ebitda $2.48 billion to $2.64 billion, saw $2.95 billion, estimate $2.79 billion
Sees depreciation and amortization $1.09 billion, saw $1.09 billion, estimate $1.08 billion
Sees Constant currency net yields about -3% to -5%
Norwegian Cruise's second-quarter forecast also missed the Bloomberg Consensus, reinforcing all the concerns management noted above.
Source: ZeroHedge News
