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Norwegian Cruise Line Holdings Ltd. NCLH reported second-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis. Following the results, the company’s shares gained 13.6% in the pre-market trading session.
For the quarter, the company reported strength in consumer demand, solid onboard spending and strategic growth initiatives. Management highlighted strong booking trends across all three brands, with volumes surpassing historical levels.
Norwegian Cruise reported an adjusted earnings per share (EPS) of 51 cents, marginally missing the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company reported an adjusted earnings per share of 39 cents.
Quarterly revenues of $2.52 billion missed the consensus mark of $2.55 billion. The metric increased 6.1% year over year.
Norwegian Cruise Line Holdings Ltd. price-consensus-eps-surprise-chart | Norwegian Cruise Line Holdings Ltd. Quote
Passenger ticket revenues were $1.7 billion compared with $1.6 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.62 billion.
Onboard and other revenues increased to $808.5 million from $770.4 million reported in the prior-year quarter. We expected onboard and other revenues to be $908.7 million.
Total cruise operating expenses in the second quarter increased 0.1% year over year to $1.45 billion. Our model anticipated total cruise operating expenses to be $1.51 billion.
During the second quarter, gross cruise costs per Capacity Day were $305.65 compared with $305.38 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $163.67 compared with $163.34 reported in the prior-year period.
Net interest expenses were $236.8 million, down from $178.5 million reported in the year-ago quarter.
As of June 30, 2025, the company had cash and cash equivalents of $184 million, down from $190.8 million at the end of 2024. Long-term debt was $12.6 billion compared with $11.8 billion as of 2024-end.
Despite a soft patch in early April, the company reported a strong rebound in booking trends for third-quarter long-haul and extended European itineraries, pushing booking volumes above historical levels. Norwegian Cruise continues to hold its position within the optimal range for its 12-month forward booked position. Second-quarter 2025 occupancy came in at 103.9%, consistent with guidance. During the quarter, advance ticket sales — including the long-term portion — came in at $4 billion compared with $3.9 billion reported in the prior-year quarter.
For third-quarter 2025, NCLH anticipates occupancy to be approximately 105.5% and Capacity Days to be about 6.40 million. For the quarter, interest expenses are expected to be approximately $180 million, while depreciation and amortization are anticipated to be about $252 million. Adjusted EBITDA is expected to be about $1 billion. Adjusted EPS is predicted to be nearly $1.14.
For 2025, the company anticipates occupancy to be approximately 103% compared with the prior guidance of 102.5% and Capacity Days to be about 24.5 million. During the year, interest expenses are expected to be approximately $700 million. Depreciation and amortization are anticipated at nearly $985 million. Adjusted EBITDA during the year is expected to be nearly $2.72 billion. For 2025, NCLH continues to expect adjusted EPS of $2.05.
Norwegian Cruise currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc CCL, Monarch Casino & Resort, Inc. MCRI and Planet Fitness, Inc. PLNT.
Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 20.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.9% and 40.9%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 30.9% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 12.3% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.
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This article originally published on Zacks Investment Research (zacks.com).
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