Norwegian Cruise Stock Down on Q1 Earnings & Revenues Miss

Core Viewpoint - Norwegian Cruise Line Holdings Ltd. (NCLH) reported first-quarter 2025 results that missed earnings and revenue estimates, leading to an 8.5% decline in shares during pre-market trading [1][3]. Financial Performance - Adjusted earnings per share for Q1 2025 were 7 cents, missing the Zacks Consensus Estimate of 9 cents, and down from 16 cents in the prior-year quarter [3]. - Quarterly revenues totaled $2,127.6 million, missing the consensus mark of $2,148 million and representing a 3% year-over-year decline [3]. - Passenger ticket revenues were $1.41 billion, down from $1.46 billion in the prior-year quarter, while onboard and other revenues decreased to $708.9 million from $731.4 million [3][4]. Expenses and Operating Results - Total cruise operating expenses decreased by 6% year over year to $1.30 billion, attributed to lower commissions, transportation, and other costs, as well as reduced fuel and food costs [5]. - Gross cruise costs per Capacity Day were $297.39, slightly down from $298.11 in the prior year, while adjusted net cruise costs per Capacity Day were about $169.33, compared to $169.45 in the previous year [6]. Balance Sheet - As of March 31, 2025, cash and cash equivalents stood at $184.4 million, down from $190.8 million at the end of 2024, while long-term debt increased to $12.9 billion from $11.8 billion [7]. Booking Update - Despite a softening in 12-month forward booking trends, the company maintained its desired booking range, with Q1 2025 occupancy at 101.5%, slightly lower than the previous year due to increased dry-dock activity [8]. - Advance ticket sales, including long-term bookings, rose 2.6% year over year, reaching $3.9 billion by the end of the quarter [8]. Guidance - For Q2 2025, NCLH anticipates occupancy of approximately 103.2% and Capacity Days of about 6.06 million, with adjusted interest expenses expected to be around $175 million [9]. - For the full year 2025, the company expects occupancy of approximately 102.5%, down from prior guidance of 103.4%, and adjusted EPS of $2.05 [10][11].