Norwegian Cruise Line (NCLH) Stock Dips on Revenue Miss
NEW YORK (TheStreet) -- Norwegian Cruse Line Holdings (NCLH) - Get Report shares are slumping 4.78% to $60.71 on Tuesday morning after the cruise line operator earlier today reported its third quarter 2015 earnings results. Profit beat analysts' projections while sales fell short.
For the latest quarter, the company earned $1.35 a share on revenue of $1.28 billion.
Analysts had expected the company to report a profit of $1.34 a share on revenue of $1.29 billion.
In the same period the year prior, the company earned $1.11 a share on revenue of $907 million.
For the latest quarter, interest expense increased to $49.8 million from $32.3 million due to the incremental debt incurred in connection with the $3.025 billion acquisition of Prestige Cruises International,the company said.
However, strong pricing environment boosted the company's profits.
"The continued momentum from our revenue enhancement strategies resulted in net yield growth of approximately five percent driving strong earnings performance in the quarter," CEO Frank Del Rio stated.
Looking ahead, the company expects full year 2015 earnings to be between the range of $2.95 to $2.90.
Based in Miami, Norwegian Cruise Line provides cruise experiences for travelers with various itineraries.
Separately, TheStreet Ratings team rates NORWEGIAN CRUISE LINE HLDGS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate NORWEGIAN CRUISE LINE HLDGS (NCLH) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: NCLH
data by