On July 30, Norwegian Cruise Line fell 5.69% in pre-market trading, trading at $19.57 per share, with turnover of $1.3836 million. The decline was triggered by the company's Q2 earnings release, which revealed full-year guidance far below consensus expectations.
Norwegian Cruise Line reported Q2 adjusted EPS of $0.48, beating the analyst estimate of $0.39 by 23%. However, the company maintained its full-year adjusted EPS guidance at $1.50, approximately 9.6% below the FactSet consensus estimate of $1.66. Q2 revenue came in at $2.641 billion, marginally missing the $2.643 billion estimate, with year-over-year growth decelerating. The company attributed the subdued outlook to surging fuel costs driven by ongoing Middle East tensions and persistent softness in cruise travel demand.
Additionally, management disclosed that booking volumes for the next 12 months remain below optimal levels, indicating consumer willingness to book has not fully recovered. Morgan Stanley had previously warned that the Iran conflict would pressure net yields in the second half. The combination of significantly lowered guidance and weakening demand outlook served as the core catalyst for the pre-market selloff.
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