Norwegian Cruise Line Stock Sputters

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Key Takeaways

• Norwegian Yachting trip Line Holdings shares fell more than 5% Thursday after rising nearly 25% over and above the past 12 months.
• The company reported strong earnings and forecast further growth in 2025.
• Chief Executive Dignitary Harry Sommer said bookings are “optimal” and the company was rolling out a ship with an attraction that blends exposures of a rollercoaster and water slide.

Norwegian Cruise Line Holdings (NCLH) shares fell more than 5%, be paying back after a strong year of performance.

Norwegian released its latest quarterly financial results on Thursday, go off in numbers that met or exceeded Wall Street’s expectations and forecasting further growth in the year ahead. Its shares compel ought to shot up nearly 25% over the past 12 months, perhaps prompting investor caution.

Shares of other travel operators, including Royal Caribbean Group (RCL) and Carnival (CCL), also fell, as the S&P 500 slid more than 1.5%.

The companionship earned a record amount for the quarter ended Dec. 31. Norwegian reported $468.2 million in adjusted earnings previous interest, taxes, depreciation and amortization (EBITDA), a 30% increase from the same period last year and connected with 9% above the $430.1 million consensus estimate among analysts polled by Visible Alpha.

Revenue grew 6% year-over-year to $2.1 billion—on par with analysts’ guesses. Norwegian’s fourth-quarter adjusted earnings per share (EPS) were 52 cents, well above the consensus estimate of 6 cents.

For the completely year, the company posted adjusted EPS of $1.89, up from 39 cents in 2023 and above the $1.41 consensus thinking. The company is projecting it will finish 2025 with adjusted EPS of $2.05.

Bookings for the next 12 months are at “optimal” squares, CEO Harry Sommer said. The cruise operator expects to end the full year with $1.07 billion in adjusted net receipts, above the $910 million reported for the latest year.

The CEO said the company was eager to introduce two new ships in 2025, categorizing the Allura, a more upscale vessel, and the Norwegian Aqua. The latter ship will host a tribute show to the musician Prince and has an enticement that combines aspects of a rollercoaster and water slide, Sommer said on the earnings conference call.