Norwegian Cruise Line shares fall on potential softness

Core Insights - The cruise industry is experiencing fluctuations in consumer confidence and travel budgets, impacting bookings and revenue expectations [2][3][4] Company Performance - Norwegian Cruise Line Holdings reported first-quarter revenue of $2.13 billion, slightly below the $2.15 billion estimate, with adjusted earnings per share of 7 cents compared to the expected 9 cents [1] - The company adjusted its net yield growth guidance down to a range of 2% to 3% and anticipates revenue pressures for the year, although it maintained its EBITDA and adjusted earnings per share guidance [3] - Royal Caribbean reported results that exceeded Wall Street expectations and raised its full-year guidance, despite its shares being down about 8% year to date [5] Market Trends - The cruise industry is observing a trend where travelers are increasingly opting for cruises during economic downturns due to perceived value compared to land-based vacations [4] - On-board spending for Norwegian remained steady in April, indicating a potential return to normalcy in consumer behavior [6] - Despite some challenges, there is a belief that consumers will continue to prioritize vacations, viewing them as essential experiences [6]