Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines improved on a year-over-year basis.
Following the results, the company’s shares declined 6.1% in today’s pre-market trading session. Investor sentiment was impacted by softer booking trends and macroeconomic pressures, including geopolitical uncertainties affecting travel demand.
NCLH’s Q1 Earnings & Revenues
Norwegian Cruise reported adjusted earnings per share (EPS) of 23 cents, beating the Zacks Consensus Estimate of 15 cents by 53.3%. In the prior-year quarter, the company reported adjusted EPS of 10 cents.
Quarterly revenues of $2.33 billion missed the consensus mark of $2.34 billion by 0.5%. The metric increased 9.6% year over year.
Norwegian Cruise Line Holdings Ltd. Price, Consensus and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Passenger ticket revenues were $1.54 billion compared with $1.42 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.60 billion.
Onboard and other revenues increased to $788.9 million from $708.9 million reported in the prior-year quarter. We expected onboard and other revenues to be $722.7 million.
NCLH’s Expenses & Operating Results
Total cruise operating expenses in the first quarter increased to $1.38 billion from $1.30 billion reported in the prior-year quarter. Our model anticipated total cruise operating expenses to be $1.38 billion.
During the quarter, gross cruise costs per Capacity Day were approximately $287 compared with $297 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $169 on an as-reported basis.
Net interest expenses were $166 million, down from $217.9 million reported in the year-ago quarter.
NCLH’s Operating Performance Metrics
Capacity Days increased to 6.39 million from 5.70 million reported in the prior-year quarter. Passenger Cruise Days rose to 6.63 million from 5.79 million.
Occupancy reached 103.8%, up from 101.5% reported in the prior-year period, reflecting strong onboard demand and improved fleet utilization.
Gross margin per Capacity Day increased 4% year over year, while Net Yield declined approximately 0.3% on an as-reported basis.
NCLH’s Balance Sheet
As of March 31, 2026, the company had cash and cash equivalents of $185 million, down from $209.9 million at the end of 2025. Total debt was $15.2 billion.
Net debt stood at approximately $15 billion, with net leverage at 5.3x. Liquidity was $1.6 billion, including availability under its revolving credit facility.
Booking Update of NCLH
The company continues to operate below its optimal booking range, impacted by execution gaps and softer demand trends. Heightened geopolitical uncertainty, particularly related to Middle East tensions, has affected travel demand, especially in Europe.
While near-term bookings remain pressured, the company is implementing targeted actions to better align its commercial strategy with deployment and improve revenue management execution. These initiatives are expected to support gradual improvement over time.
Q2 & 2026 Guidance by NCLH
For second-quarter 2026, NCLH anticipates occupancy to be approximately 102.5% and Capacity Days to be about 6.6 million. Adjusted EBITDA is expected to be approximately $632 million, while adjusted EPS is projected at 38 cents.
For 2026, the company expects Capacity Days of approximately 26.25 million. Adjusted EBITDA is anticipated in the range of $2.48 billion to $2.64 billion, lower than the prior expectation of nearly $2.95 billion.
Adjusted EPS for 2026 is projected between $1.45 and $1.79, down from the earlier expectation of $2.38, indicating ongoing macroeconomic headwinds, including higher fuel costs and softer booking trends.
NCLH’s Zacks Rank & Recent Consumer Discretionary Releases
Norwegian Cruise currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean Cruises Ltd. RCL reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. In the quarter under review, the company reported adjusted EPS of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71. Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Hyatt Hotels Corporation H reported first-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported first-quarter 2026 adjusted earnings of 63 cents per share, up 37% from 46 cents a year ago. The metric beat the Zacks Consensus Estimate of 57 cents per share by 10.5%. Total revenues rose 1.7% year over year to $1,748 million and topped the consensus mark of $1,712 million by 2.1%. Hyatt’s operating backdrop stayed constructive, with comparable system-wide hotels RevPAR increasing 5.4% and comparable system-wide all-inclusive resorts Net Package RevPAR rising 7.4% from the year-ago quarter.
Mattel, Inc. MAT reported first-quarter 2026 results, with adjusted earnings and net sales beating the Zacks Consensus Estimate. Revenues improved, while the bottom line fell from the prior-year quarter levels. The company posted an adjusted loss of 20 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents by 16.67%. The bottom line declined from an adjusted loss of 2 cents reported in the prior-year quarter. Net sales of $862 million topped the consensus mark of $801 million by 7.59% and increased 4% year over year.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hyatt Hotels Corporation (H): Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
Mattel, Inc. (MAT): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).