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Norwegian Cruise Line Beats on Q3 Profit but Guides Softer Q4; Shares Drop 13%

Caution on holiday‑quarter profit tied to cost volatility, softer demand, fuel swings drove the selloff.

Overview

  • Revenue hit a quarterly record at $2.9 billion, up 5% year over year but below the $3.02 billion consensus.
  • Adjusted results topped forecasts with net income of $596 million, EPS of $1.20 versus $1.16 expected, and EBITDA of $1.02 billion.
  • Fourth‑quarter guidance underwhelmed at adjusted EPS of $0.27 versus the $0.30 estimate and adjusted EBITDA of $555 million, with management citing cost uncertainty and slower holiday demand as reported by Reuters.
  • Full‑year outlook was maintained or improved as the company reaffirmed adjusted EBITDA of $2.72 billion and raised adjusted EPS guidance to $2.10.
  • Shares fell about 13% to $19.30 as investors weighed fuel volatility, higher drydock and maintenance expenses, $14.5 billion of debt with 5.4x net leverage, and recent moves to cut shares and refinance $2 billion of debt.