MW Norwegian Cruise sets a revenue record, but Wall Street wanted even more

By Tomi Kilgore

It's now a trend, as revenue from passenger tickets and onboard spending has missed expectations for three straight quarters

Norwegian Cruise Line's stock looked set to fall after revenue rose to a record but missed expectations for a third straight quarter.

Shares of Norwegian Cruise Line Holdings Ltd. dropped toward a four-month low in early trading Tuesday after the cruise operator reported third-quarter revenue that rose to a record, but missed expectations for a third straight quarter.

Passenger ticket and onboard spending revenue also missed expectations again. Wall Street continues to expect more from the company, as strong demand led to record bookings for future cruises, particularly for sailings to the Caribbean.

The company also disappointed Wall Street by lowering its full-year guidance for net yield - a measure of profitability per available capacity - to between 2.3% and 2.4% from 2.5% when including the negative effect of currency moves. Excluding currency moves, the outlook was trimmed to between 2.4% and 2.5% from 2.5%.

The stock $(NCLH)$ slumped 8.7% in premarket trading, putting it on track to open near the lowest mark since July 1.

Revenue for the quarter to Sept. 30 grew 4.7% to $2.94 billion, but analysts were still expecting more; the average estimate compiled by FactSet was $3.02 billion. The record results were driven by strong demand, which helped fill increased capacity.

Occupancy for the quarter was 106.4%, which was above the company's guidance of about 105.5%.

Passenger ticket and onboard spending revenue also missed Wall Street's high expectations, which come as the company touts strong demand and record bookings for future cruises.

Meanwhile, onboard and other revenue rose 3.1% to $888.2 million, missing expectations of $915.9 million.

"The company continues to experience healthy consumer demand across its portfolio of three brands for the balance of 2025 and into 2026, with record bookings made in the third quarter, including strong demand for its Caribbean sailings," the company said in a statement. "As a result, the company remains well positioned within its optimal range for its forward 12-month booked position."

Total income for the latest quarter was up 1.6% to $428.2 million, and adjusted earnings per share, which excludes nonrecurring items, of $1.20 were above the FactSet consensus of $1.16.

Looking ahead, the company raised its 2025 guidance for adjusted EPS to about $2.10 from $2.05 and for occupancy to 103.5% from 103%.

The stock has shed 13.8% in 2025 through Monday, while shares of larger rival Royal Caribbean Group $(RCL)$ have rallied 20.4% and the S&P 500 index SPX has advanced 16.5%.

-Tomi Kilgore

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November 04, 2025 07:46 ET (12:46 GMT)

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