Shares of Norwegian Cruise Line Holdings (NYSE:NCLH) tanked over 14% at the time of writing. This occurred after the company’s guidance fell short of market predictions, despite the fact that its Q2 earnings report surpassed expectations. The company stated that it continues to witness robust and steady customer demand. For the latter half of the year, the cumulative booking position exceeds that of 2019, with higher pricing. In terms of advanced ticket sales, the balance hit a record $3.5B at the quarter’s end, around $167M higher than the previous quarter, and a significant 56% increase from Q2 of 2019, the pre-pandemic year.
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The outlook does start off promising. Norwegian Cruise Line predicts a full-year EPS of approximately $0.80, which is slightly higher than the consensus mark of $0.78. Furthermore, the company anticipates full-year adjusted EBITDA to be between $1.85B to $1.95B, compared to a consensus range of $1.80B to $1.95B. However, it was its Q3 guidance that was the problem, as the firm expects an adjusted EPS of about $0.70 versus the consensus of $0.79.
Is NCLH Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NCLH stock based on five Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $19.61 per share implies only 3.89% upside potential despite today’s plunge.
