Norwegian Q3 Misses Revenue; EPS Beats, Guidance Raised

Norwegian Cruise Line Holdings reported Q3 revenue of $2.94 billion, missing analyst estimates as consumer demand remained subdued amid inflation, higher fuel costs and geopolitical travel disruptions. Adjusted EPS was $1.20, beating the $1.16 consensus and up about 17% year-over-year. Management raised FY2025 adjusted EPS guidance to $2.10 (from $2.05) and reaffirmed prior 2025 targets for net yield growth and roughly $2.72 billion of adjusted EBITDA. The company expects Q4 adjusted EPS of $0.27, below the $0.30 Street estimate, and cited continued pressure from lower participation in its air travel program plus ongoing fuel and maintenance costs. Norwegian has reduced its share count by about 7.5%, though its high debt-to-equity ratio and liquidity concerns persist. Shares fell roughly 1.1% to $22.18 (about 24% below their 52-week high) after the release, and options activity showed elevated implied volatility with a 2.6:1 call-to-put ratio.