Norwegian Cruise Ord Down 11.60% To $11.96 After Earnings Miss

Norwegian Cruise Line Holdings Ltd (NCLH) missed earnings projections on 8/9/2022 for Q2 2022.

The consensus among analysts for Norwegian Cruise Ord was for an earnings per share (EPS) loss of $0.86 per share. The firm failed to meet those projections, reporting an EPS loss of $1.14 per share, a negative surprise of $0.28 (-33%). Profits rose 41% year-over-year after reporting an EPS loss of $1.93 per share in its year-ago quarter. The positive growth rate signals that the Consumer Cyclical company is performing well amid recent economic conditions.

Analyst projections for Norwegian Cruise Ord revenue came in at a consensus of $1.3 billion. Second-Quarter revenues missed estimates for $1.2 billion by $73 million (6%). The company achieved 27075% growth year-over-year compared to the firm's revenue of $4.4 million from the year-ago quarter. The lower earnings growth relative to revenue signals Norwegian Cruise Ord has not been able to improve its profit margin.

The stock is down 11.60% to $11.96 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Norwegian Cruise Ord a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 44. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Norwegian Cruise Line is the world's third-largest cruise company by berths (at nearly 60,000), operating 28 ships across three brands (Norwegian, Oceania, and Regent Seven Seas), offering both freestyle and luxury cruising. The company has redeployed its entire fleet as of May 2022. With nine passenger vessels on order among its brands through 2027 (representing 24,000 incremental berths), Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sailed to around 500 global destinations before the pandemic.