(Reuters) -Norwegian Cruise Line Holdings on Thursday missed estimates for second-quarter revenue as cruise demand and on-board spending weakened in the face of rising economic uncertainty. The
Norwegian Cruise Line Keeps Profit Outlook as Bookings Surge
Norwegian Cruise Line's Financial Outlook
(Reuters) -Norwegian Cruise Line Holdings signaled a demand rebound for its cruise vacations and maintained its annual profit target, sending its shares up 12% on Thursday.
Demand and Consumer Spending
The company had earlier warned that geopolitical tensions and economic uncertainty around tariffs had weakened consumer spending on its premium vacations, particularly for its longer itineraries in Europe.
Quarterly Performance Metrics
The 12-month forward booked position was ahead of historical levels in recent months after having softened in early April, while on-board spending was strong, CEO Harry Sommer said in a statement.
Market Reactions and Analyst Insights
The reaffirming of annual forecast was "more than good enough given low expectations," said Truist Securities analyst Patrick Scholes, referring to the guidance in April.
Peers Royal Caribbean and Carnival raised their annual targets this quarter, banking on robust demand, higher ticket prices and strong on-board spending to help offset a jump in fuel costs.
Affluent consumers have been splurging on experiences such as cruises over the past few years despite a choppy macroeconomic environment, and Norwegian Cruise Line, like peers, expanded its fleet to capture the demand.
The company reiterated its annual adjusted earnings per share forecast of a 16% rise to $2.05, compared with estimates of $2.02, according to data compiled by LSEG.
Occupancy for the three-month period ended June 30 was 103.9%, compared with 101.5% in the first quarter.
The company's second-quarter total revenue of $2.52 billion missed estimates of $2.56 billion, while adjusted earnings per share of 51 cents also fell short of expectations by 1 cent.
Norwegian Cruise Line forecast current-quarter adjusted earnings per share of around $1.14, below the average analyst estimate of $1.17.
Shares were trading at $26.32, and were set to reverse their year-to-date decline if current gains hold.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila)
