Shares of Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) are trading lower Tuesday, caught in a sector-wide downdraft following a mixed earnings report from competitor Royal Caribbean Cruises Ltd (NYSE:RCL). The sympathy move lower occurred despite ongoing signs of strong consumer demand for cruises.
What To Know: Royal Caribbean reported a strong second quarter, beating Wall Street estimates with an adjusted earnings per share of $4.38. The company also raised its full-year 2025 EPS guidance to a range of $15.41 to $15.55, citing strong demand and cost management.
However, investors focused on its third-quarter forecast, which came in below expectations. RCL projected third-quarter adjusted EPS between $5.55 and $5.65, missing the analyst consensus of $5.97 due to cost timing shifts and expenses related to its new ship, Star of the Seas.
The cautious short-term outlook from the industry giant prompted a reevaluation of the entire cruise sector. Norwegian, the world’s third-largest cruise operator, felt the impact.
The company operates three distinct brands catering to different market segments: the contemporary Norwegian Cruise Line, the upper-premium Oceania Cruises, and the all-inclusive Regent Seven Seas Cruises.
While NCLH benefits from the same tailwinds of high occupancy and strong onboard spending, RCL's guidance suggests near-term operational cost pressures could affect profitability across the industry.
All eyes will now turn to Norwegian’s own second-quarter earnings report, scheduled for release before the market opens on Thursday. Analysts estimate the company will report an EPS of 51 cents on revenue of $2.55 billion.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, Norwegian Cruise Line Holdings shows strength in key areas. The company earns a high score of 73.03 for Growth, indicating a strong track record and future outlook for expanding its business.
It also boasts a solid Momentum score of 66.66, suggesting the stock has a positive price trend compared to the market. Its Value score is more neutral at 51.04, implying that its current market price is considered fair relative to its underlying financial health.
Price Action: According to data from Benzinga Pro, NCLH shares are trading 1.34% lower at $23.56. The stock has a 52-week high of $29.29 and a 52-week low of $14.21.
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How To Buy NCLH Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Norwegian Cruise Line’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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