Norwegian shares fall on earnings despite third quarter record revenue

Core Insights - Norwegian Cruise Line's shares fell despite reporting record revenues for the third quarter, as the market was disappointed by lowered full-year net yield expectations and revenue misses [1] - The company is focusing on attracting premium families, which are expected to spend more on board, enhancing profitability [2] Financial Performance - Norwegian Cruise Line reported its best third quarter ever, with record revenues, but still saw a 14.5% drop in stock price [1] - The company experienced a margin expansion of 600 basis points since the end of 2023 and projects growth in the coming years [1] Market Dynamics - The cruise industry is witnessing strong demand, but high investor expectations are not being met, leading to stock declines across major cruise lines [1] - The focus on premium families is a strategic shift, as these families are willing to spend on additional excursions and experiences [2] Future Outlook - Norwegian plans to increase capacity by 7% by 2026 with new ships coming online [1] - Group business in Las Vegas is fully booked for 2026, indicating confidence in the upscale travel segment [5]