Norwegian Cruise Line Stock Drops 15% On Earnings - Buy Or Wait?

Core Insights - Norwegian Cruise Line (NCLH) experienced a significant stock decline of approximately 15% following its earnings release, despite beating adjusted earnings expectations. Revenue of $2.94 billion fell short of market expectations, raising concerns about demand, pricing power, and onboard spending [1] - The stock is currently trading within a historical support range of $17.85 to $19.73, where it has previously rallied significantly. Over the past decade, NCLH has seen buying interest at this level six times, achieving an average peak return of 31.6% [2] Financial Metrics - NCLH reported a revenue growth of 5.2% over the last twelve months (LTM) and 79.0% over the last three-year average. The company has a free cash flow margin of approximately -5.3% and an operating margin of 16.0% LTM [6] - The stock is currently trading at a price-to-earnings (PE) multiple of 11.7 [6] Company Overview - Norwegian Cruise Line operates a fleet of 28 ships with 59,150 berths, distributing its services through retail, travel advisors, and onboard sales channels [4]