We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Norwegian Cruise Q1 Earnings Beat Estimates, Revenues Miss, Stock Down
Read MoreHide Full Article
Key Takeaways
NCLH Q1 EPS beat estimates, but revenues missed, and shares fell 6.1% in pre-market trading.
Softer bookings and geopolitical uncertainty hurt demand, especially in European travel markets.
NCLH cut 2026 EBITDA and EPS outlook, citing higher fuel costs and ongoing demand pressures.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines improved on a year-over-year basis.
Following the results, the company’s shares declined 6.1% in today’s pre-market trading session. Investor sentiment was impacted by softer booking trends and macroeconomic pressures, including geopolitical uncertainties affecting travel demand.
NCLH’s Q1 Earnings & Revenues
Norwegian Cruise reported adjusted earnings per share (EPS) of 23 cents, beating the Zacks Consensus Estimate of 15 cents by 53.3%. In the prior-year quarter, the company reported adjusted EPS of 10 cents.
Quarterly revenues of $2.33 billion missed the consensus mark of $2.34 billion by 0.5%. The metric increased 9.6% year over year.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Passenger ticket revenues were $1.54 billion compared with $1.42 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.60 billion.
Onboard and other revenues increased to $788.9 million from $708.9 million reported in the prior-year quarter. We expected onboard and other revenues to be $722.7 million.
NCLH’s Expenses & Operating Results
Total cruise operating expenses in the first quarter increased to $1.38 billion from $1.30 billion reported in the prior-year quarter. Our model anticipated total cruise operating expenses to be $1.38 billion.
During the quarter, gross cruise costs per Capacity Day were approximately $287 compared with $297 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $169 on an as-reported basis.
Net interest expenses were $166 million, down from $217.9 million reported in the year-ago quarter.
NCLH’s Operating Performance Metrics
Capacity Days increased to 6.39 million from 5.70 million reported in the prior-year quarter. Passenger Cruise Days rose to 6.63 million from 5.79 million.
Occupancy reached 103.8%, up from 101.5% reported in the prior-year period, reflecting strong onboard demand and improved fleet utilization.
Gross margin per Capacity Day increased 4% year over year, while Net Yield declined approximately 0.3% on an as-reported basis.
NCLH’s Balance Sheet
As of March 31, 2026, the company had cash and cash equivalents of $185 million, down from $209.9 million at the end of 2025. Total debt was $15.2 billion.
Net debt stood at approximately $15 billion, with net leverage at 5.3x. Liquidity was $1.6 billion, including availability under its revolving credit facility.
Booking Update of NCLH
The company continues to operate below its optimal booking range, impacted by execution gaps and softer demand trends. Heightened geopolitical uncertainty, particularly related to Middle East tensions, has affected travel demand, especially in Europe.
While near-term bookings remain pressured, the company is implementing targeted actions to better align its commercial strategy with deployment and improve revenue management execution. These initiatives are expected to support gradual improvement over time.
Q2 & 2026 Guidance by NCLH
For second-quarter 2026, NCLH anticipates occupancy to be approximately 102.5% and Capacity Days to be about 6.6 million. Adjusted EBITDA is expected to be approximately $632 million, while adjusted EPS is projected at 38 cents.
For 2026, the company expects Capacity Days of approximately 26.25 million. Adjusted EBITDA is anticipated in the range of $2.48 billion to $2.64 billion, lower than the prior expectation of nearly $2.95 billion.
Adjusted EPS for 2026 is projected between $1.45 and $1.79, down from the earlier expectation of $2.38, indicating ongoing macroeconomic headwinds, including higher fuel costs and softer booking trends.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. In the quarter under review, the company reported adjusted EPS of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71. Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Hyatt Hotels Corporation (H - Free Report) reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported first-quarter 2026 adjusted earnings of 63 cents per share, up 37% from 46 cents a year ago. The metric beat the Zacks Consensus Estimate of 57 cents per share by 10.5%. Total revenues rose 1.7% year over year to $1,748 million and topped the consensus mark of $1,712 million by 2.1%. Hyatt’s operating backdrop stayed constructive, with comparable system-wide hotels RevPAR increasing 5.4% and comparable system-wide all-inclusive resorts Net Package RevPAR rising 7.4% from the year-ago quarter.
Mattel, Inc. (MAT - Free Report) reported first-quarter 2026 results, with adjusted earnings and net sales beating the Zacks Consensus Estimate. Revenues improved, while the bottom line fell from the prior-year quarter levels. The company posted an adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 16.67%. The bottom line declined from an adjusted loss of 2 cents reported in the prior-year quarter. Net sales of $862 million topped the consensus mark of $801 million by 7.59% and increased 4% year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Norwegian Cruise Q1 Earnings Beat Estimates, Revenues Miss, Stock Down
Key Takeaways
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines improved on a year-over-year basis.
Following the results, the company’s shares declined 6.1% in today’s pre-market trading session. Investor sentiment was impacted by softer booking trends and macroeconomic pressures, including geopolitical uncertainties affecting travel demand.
NCLH’s Q1 Earnings & Revenues
Norwegian Cruise reported adjusted earnings per share (EPS) of 23 cents, beating the Zacks Consensus Estimate of 15 cents by 53.3%. In the prior-year quarter, the company reported adjusted EPS of 10 cents.
Quarterly revenues of $2.33 billion missed the consensus mark of $2.34 billion by 0.5%. The metric increased 9.6% year over year.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Passenger ticket revenues were $1.54 billion compared with $1.42 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.60 billion.
Onboard and other revenues increased to $788.9 million from $708.9 million reported in the prior-year quarter. We expected onboard and other revenues to be $722.7 million.
NCLH’s Expenses & Operating Results
Total cruise operating expenses in the first quarter increased to $1.38 billion from $1.30 billion reported in the prior-year quarter. Our model anticipated total cruise operating expenses to be $1.38 billion.
During the quarter, gross cruise costs per Capacity Day were approximately $287 compared with $297 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $169 on an as-reported basis.
Net interest expenses were $166 million, down from $217.9 million reported in the year-ago quarter.
NCLH’s Operating Performance Metrics
Capacity Days increased to 6.39 million from 5.70 million reported in the prior-year quarter. Passenger Cruise Days rose to 6.63 million from 5.79 million.
Occupancy reached 103.8%, up from 101.5% reported in the prior-year period, reflecting strong onboard demand and improved fleet utilization.
Gross margin per Capacity Day increased 4% year over year, while Net Yield declined approximately 0.3% on an as-reported basis.
NCLH’s Balance Sheet
As of March 31, 2026, the company had cash and cash equivalents of $185 million, down from $209.9 million at the end of 2025. Total debt was $15.2 billion.
Net debt stood at approximately $15 billion, with net leverage at 5.3x. Liquidity was $1.6 billion, including availability under its revolving credit facility.
Booking Update of NCLH
The company continues to operate below its optimal booking range, impacted by execution gaps and softer demand trends. Heightened geopolitical uncertainty, particularly related to Middle East tensions, has affected travel demand, especially in Europe.
While near-term bookings remain pressured, the company is implementing targeted actions to better align its commercial strategy with deployment and improve revenue management execution. These initiatives are expected to support gradual improvement over time.
Q2 & 2026 Guidance by NCLH
For second-quarter 2026, NCLH anticipates occupancy to be approximately 102.5% and Capacity Days to be about 6.6 million. Adjusted EBITDA is expected to be approximately $632 million, while adjusted EPS is projected at 38 cents.
For 2026, the company expects Capacity Days of approximately 26.25 million. Adjusted EBITDA is anticipated in the range of $2.48 billion to $2.64 billion, lower than the prior expectation of nearly $2.95 billion.
Adjusted EPS for 2026 is projected between $1.45 and $1.79, down from the earlier expectation of $2.38, indicating ongoing macroeconomic headwinds, including higher fuel costs and softer booking trends.
NCLH’s Zacks Rank & Recent Consumer Discretionary Releases
Norwegian Cruise currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. In the quarter under review, the company reported adjusted EPS of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71. Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Hyatt Hotels Corporation (H - Free Report) reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported first-quarter 2026 adjusted earnings of 63 cents per share, up 37% from 46 cents a year ago. The metric beat the Zacks Consensus Estimate of 57 cents per share by 10.5%. Total revenues rose 1.7% year over year to $1,748 million and topped the consensus mark of $1,712 million by 2.1%. Hyatt’s operating backdrop stayed constructive, with comparable system-wide hotels RevPAR increasing 5.4% and comparable system-wide all-inclusive resorts Net Package RevPAR rising 7.4% from the year-ago quarter.
Mattel, Inc. (MAT - Free Report) reported first-quarter 2026 results, with adjusted earnings and net sales beating the Zacks Consensus Estimate. Revenues improved, while the bottom line fell from the prior-year quarter levels. The company posted an adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 16.67%. The bottom line declined from an adjusted loss of 2 cents reported in the prior-year quarter. Net sales of $862 million topped the consensus mark of $801 million by 7.59% and increased 4% year over year.