Norwegian Cruise Line Cuts Full-Year Profit Outlook

Norwegian Cruise Line Holdings Ltd. sharply lowered its full-year profit outlook on Monday despite reporting first-quarter results that exceeded earnings expectations, sending its shares down more than 6 percent in premarket trading.

The Miami-based cruise operator posted adjusted earnings per share of 23 cents for the first quarter ended March, topping analyst estimates of 15 cents. Revenue rose 10 percent to 2.33 billion from 2.13 billion a year earlier, though it fell slightly short of the 2.36 billion forecast. Adjusted earnings before interest, taxes, depreciation and amortization climbed 18 percent to 533 million, surpassing the company's guidance of 515 million. Passenger occupancy increased to 103.8 percent from 101.5 percent, with 861,060 travelers carried compared to 669,099 in the prior year.

The positive quarterly performance was overshadowed by the revised full-year guidance. Norwegian now expects adjusted earnings per share of 1.45 to 1.79, well below its previous midpoint target of 2.38 and analyst consensus around 2.12. Adjusted EBITDA guidance was cut to 2.48 billion to 2.64 billion, trailing the prior forecast of 2.95 billion and expectations of 2.79 billion....