Norwegian Cruise Line stock rises on positive Q1 guidance
Norwegian Cruise Line (NCLH) posted its fourth-quarter results revealing a quarterly loss of $0.18 per share. However, the stock is trading higher thanks to upbeat first-quarter guidance and full-year guidance that matched Wall Street expectations. The cruise line stock has risen over 19% ahead of Tuesday's market close
Yahoo Finance Anchors Julie Hyman and Josh Lipton break down the latest stock movement for Norwegian Cruises shares and what it could mean for the operator moving forward.
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Editor's note: This article was written by Nicholas Jacobino, updated by Luke Carberry Mogan.
Video Transcript
JULIE HYMAN: Let's talk about Norwegian Cruise Line rising today, despite posting a wider than expected profit loss for the fourth quarter. The stock higher on the back of strong guidance for the first quarter and the full year. EBITDA forecast for the first quarter also ahead of estimates here.
And it's not necessarily shocking to see this number better than estimated. We've seen other cruise line operators like Royal Caribbean come out and say bookings have been strong, but some analysts pointing out here in court, including Patrick Schultz of Truist, that Norwegian has been less consistent than competitors so that this is a relief for that reason.
JOSH LIPTON: Also [INAUDIBLE] like Carnival, though, and Royal Caribbean, they were higher in today's trade as well. And to your point, Julie, it is kind of-- listen, this has been the headline. Cruises are just operating. They are strong. Royal Caribbean upgraded its outlook last week. We talked about that.
And the company, this was also interesting, the way that Norwegian was able to keep performing, even as sort of adjusted to geopolitical conflict. We know that it canceled and reroute sort of itineraries to Israel and the Red Sea because the conflict there, but still nailed their numbers. And investors clearly liked what they saw here.
JULIE HYMAN: Yeah, definitely.