Norwegian Cruise Line shares jump 13% on Q3 earnings beat and raised guidance
The cruise operator beat revenue and profit expectations, lifted its full-year outlook and announced a change of chief financial officer.
At a glance
- Norwegian Cruise Line Holdings shares rose 13% Thursday after third-quarter revenue of $2.95 billion beat estimates of $2.88 billion.
- Adjusted EPS was $1.12, above the company's prior guidance of 90 cents and analyst expectations of 94 cents.
- The company raised full-year guidance and said CFO Mark Kempa will step down, with Meghan Montana taking over Jan. 1.
Shares of Norwegian Cruise Line Holdings rose 13% on Thursday after the company reported third-quarter results that beat Wall Street expectations and raised its guidance for the full year.
The cruise line posted quarterly revenue of $2.95 billion, ahead of analyst estimates of $2.88 billion compiled by LSEG. Net income came in at $491 million, or $1.07 per share.
Adjusted earnings before interest, taxes, depreciation and amortization reached $937 million, above the company's previous guidance of $874 million. Adjusted earnings per share of $1.12 also exceeded the company's earlier guidance of 90 cents and analyst expectations of 94 cents, according to LSEG.
Guidance raised
Norwegian attributed the improved full-year outlook to its stronger-than-expected third quarter. The company said it now expects 2026 adjusted EBITDA of $2.55 billion and adjusted EPS of about $1.70.
The report said bookings had "improved modestly" since the company's last update but remain below what it considers its optimal range.
Norwegian said it will focus on new marketing strategies, including the launch of a new marketing platform in January. It also said it expects enhancements such as a new waterpark at its Great Stirrup Cay private island to support stronger demand.
CFO transition
Separately on Thursday, Norwegian announced that Chief Financial Officer Mark Kempa will step down after more than 25 years at the company. Meghan Montana, currently chief strategy officer, will take over the CFO role starting Jan. 1.
The company did not give a reason in the report for Kempa's departure.
Source: CNBC.
Questions and answers
- Why did Norwegian Cruise Line shares rise 13%?
- Shares jumped after the company reported third-quarter revenue of $2.95 billion and adjusted EPS of $1.12, both above analyst estimates, and raised its full-year guidance.
- What guidance did Norwegian Cruise Line give for the full year?
- The company said it expects 2026 adjusted EBITDA of $2.55 billion and adjusted EPS of about $1.70, citing its stronger-than-expected third quarter.
- Who is Norwegian Cruise Line's new CFO?
- Meghan Montana, currently chief strategy officer, will become chief financial officer on Jan. 1. She replaces Mark Kempa, who is stepping down after more than 25 years at the company.
