Norwegian Cruise Q2 revenue meets estimates

Overview

• US cruise operator's Q2 revenue rose 4.9%, essentially meeting analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company identified $100 mln in additional expected annualized cost savings

Outlook

• Norwegian expects full-year 2026 Adjusted EPS of about $1.50

• Company sees Q3 2026 Adjusted EPS at $0.90

• Company expects full-year 2026 Net Yield to decline about 5% versus 2025

Result Drivers

• CAPACITY INCREASE - Q2 revenue growth was primarily driven by increased Capacity Days, according to the company

• COST CONTROLS - Company identified $100 mln in additional expected annualized run-rate savings, mainly from technology vendor consolidation and SGA, supporting profitability

• SOFT DEMAND - Company said demand at its Norwegian Cruise Line brand remains pressured due to execution challenges and the ongoing conflict in the Middle East

Company press release: ID:nGNX36bb4V

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Norwegian Cruise Line Holdings Ltd is $22.00, about 6% above its July 29 closing price of $20.75

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Royal Caribbean raises annual profit forecast, flags modest booking hit from Middle East

• July 29 - Resilient tourists help US travel firms absorb Middle East shock

• July 29 - OneSpaWorld Q2 results beat estimates, lifts FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)