Norwegian Cruise Line Stock Slips As Softer-Than-Expected Outlook Overshadows Q4 Profit Beat — Retail Stays Optimistic

Shares of Norwegian Cruise Line Holdings (NCLH) slipped more than 5% on Thursday even as the company reported an earnings beat for the fourth-quarter, with retail sentiment staying optimistic.

For Q4, its earnings per share came in at $0.26, smashing estimates of $0.11. The company reported net sales of $2.11 billion, roughly in line with estimates, driven by “strong revenue growth and continued execution on cost efficiencies.”

Its Q4 revenue saw a 6% increase compared to the year-ago quarter, on a 1% capacity decline, the company said.

“2024 was marked by strategic and transformative milestones for Norwegian Cruise Line Holdings. From launching our Charting the Course strategy, announcing an ambitious newbuild program and the construction of our Great Stirrup Cay pier, and successfully executing brand initiatives and new guest experiences across our entire portfolio, we have laid out a solid foundation for an exciting future,” said Harry Sommer, president and CEO of Norwegian Cruise Line Holdings.

The full-year 2025 adjusted net income is expected to be about $1.07 billion, with adjusted EPS expected to be $2.05, below the consensus estimate of $2.09.

Its Q1 EPS is expected to be around $0.08, compared to consensus estimates of $0.09.

Its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be about $2.72 billion, rising by 11% over last year.

Sentiment on Stocktwits continued in the  ‘extremely bullish’ zone compared with a week ago. Message volume jumped to ‘extremely high’ from ‘high.’

One bullish comment remarked on the stock hitting support earlier in the day and favorable “mathematics.”

Shares of several cruise operators were hit recently following comments from Commerce Secretary Howard Lutnick about potential new taxes on cruise lines, but retail sentiment stayed upbeat.

According to media reports, the US federal government is mulling taxes that will be slapped on cruise operators.

Norwegian Cruise Line has a combined fleet of 32 ships that serve 700 destinations worldwide.

Norwegian Cruise Line stock is down 7.8% year-to-date.

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