How Will Norwegian Cruise Line (NCLH) Stock React to Q1 Results, Outlook?
NEW YORK (TheStreet) -- Norwegian Cruise Line (NCLH) - Get Report reported its 2016 first quarter results and provided downbeat guidance for the second quarter before Tuesday's opening bell.
The Miami-based cruise operator posted adjusted earnings of 38 cents per share, in line with analysts' estimates.
Revenue for the quarter was $1.08 billion, slightly below analysts' expectations of $1.1 billion. Last year, the company reported revenue of $938.2 million.
In addition to strong demand for its Caribbean offerings, results were also helped by higher pricing, the Wall Street Journal noted.
For the second quarter, Norwegian Cruise forecasts adjusted earnings per share between 80 and 85 cents, missing analysts' projections for earnings of 97 cents per share.
In 2016, the company expects adjusted earnings per share in the range of $3.65 to $3.85. Analysts are looking for earnings of $3.77 per share for the full year.
Continued strong demand in the Caribbean, Alaska, Hawaii and Bermuda in 2016 will likely offset softness in Europe, which is mainly a result of lower demand from North American consumers, the company stated.
Shares of Norwegian Cruise closed at $49.25 on Monday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, reasonable valuation levels and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NCLH
