Norwegian Cruise Line's (NCLH) - Get Report said adjusted earnings for fiscal 2019 will take a hit of 35 cents to 45 cents a share from the U.S. Treasury Department's decision to ban cruise travel to Cuba.
"Our three brands are working diligently to accommodate the needs of our guests and travel partners as we quickly modify itineraries to meet the new Cuba travel regulations," said CEO Frank Del Rio. "We share in the disappointment that comes with these changes especially on such short notice and sincerely appreciate the cooperation and understanding of our guests for this inconvenience. Our brands have put in place generous compensation programs that offer guests and travel partners a compelling, value-packed alternative."
Earlier this week, analysts at Buckingham Research downgraded the stock to neutral from buy while also slashing their price target to $56 from $77 on concerns about the travel restrictions to Cuba.
Treasury Secretary Steve Mnuchin said Tuesday that Cuba was playing a "destabilizing role in the Western Hemisphere, providing a communist foothold and propping up U.S. adversaries in places like Venezuela and Nicaragua by fomenting instability, undermining the rule of law and suppressing democratic process."
Norwegian shares were rising 2.73% to $53.36 Friday.