A month has gone by since the last earnings report for Norwegian Cruise Line (NCLH Quick QuoteNCLH - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Norwegian Cruise Line due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Norwegian Cruise Line Holdings Ltd. before we dive into how investors and analysts have reacted as of late.

Norwegian Cruise Q1 Earnings Beat Estimates, Revenues Miss

Norwegian Cruise 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.

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. 

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.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -32.48% due to these changes.

VGM Scores

At this time, Norwegian Cruise Line has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Norwegian Cruise Line has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Norwegian Cruise Line belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL Quick QuoteRCL - Free Report) , has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Royal Caribbean reported revenues of $4.45 billion in the last reported quarter, representing a year-over-year change of +11.3%. EPS of $3.60 for the same period compares with $2.71 a year ago.

Royal Caribbean is expected to post earnings of $3.91 per share for the current quarter, representing a year-over-year change of -10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Royal Caribbean. Also, the stock has a VGM Score of C.