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Norwegian Cruise Line Falls on First-Quarter Miss, Guidance

Norwegian says it expects to report losses until it is able to resume regular voyages.

Norwegian Cruise Line Holdings  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report was lower on Thursday after the cruise ship operator posted a wider-than-expected first-quarter loss and warned that it would continue to post losses until it is able to resume voyages.

Shares of the Miami company at last check were down 2.9% to $29.

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Norwegian reported a loss of $1.4 billion, or $4.16 a share, compared with a loss of $1.9 billion, or $8.80 a share, in the year-earlier quarter. The latest adjusted loss came to $2.03, while the FactSet consensus called for a loss of $2.02 per share.

Revenue tumbled to $3.1 million, down from $1.2 billion a year earlier, and missed the FactSet consensus of $11.2 million. 

Looking ahead, the company said that as a result of the COVID-19 pandemic, Norwegian "will report a net loss for the second quarter ending June 30, 2021, and expects to report a net loss until the company is able to resume regular voyages."

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The company's monthly average cash burn for the first quarter was in line with guidance at about $190 million, or roughly $170 million per month excluding non-recurring debt modification costs.

Norwegian said it expects the average cash burn rate in the second quarter to be about $190 million per month, as it prepares for a return to service this summer.

Norwegian recently unveiled its plan to restart cruises outside the U.S. this summer in its efforts to recover from the COVID-19 shutdown.

"As for the resumption of cruises from the U.S., we continue to engage in dialogue with the U.S. Centers for Disease Control and Prevention," Frank Del Rio, president and chief executive, said in a statement.

Del Rio said the company's team "is working through the recently issued and modified technical guidance for which additional clarification is needed on how the incorporation of vaccine requirements impacts the Conditional Sail Order and our path forward.”

Goldman Sachs analyst Stephen Grambling upgraded Norwegian to buy from neutral last month and lifted his one-year price target to $37 based on what he saw as a strong post-pandemic rebound in cruising demand.

In February, Norwegian reported a wider-than-expected fourth-quarter loss.