Norwegian Cruise Line Holdings tops second-quarter earnings expectations
The company’s results were attributed to favorable long-term passenger trends and higher cruise pricing, while leverage remains a concern.
Norwegian Cruise Line Holdings reported better-than-expected earnings for its second fiscal quarter. The report attributed the performance to favorable long-term passenger trends and higher cruise prices.
The report also said the company recently expanded its Caribbean offerings with Great Stirrup Cay, described as a new, exclusive 270-acre private island in the Bahamas. The addition could support further growth, according to the report.
Financial risks remain, however. The report said Norwegian Cruise Line Holdings carries more leverage than its peers, raising concerns about both risk and valuation.
Other identified risks include the possibility of pandemic-related cruise industry shutdowns. The company could also continue to trade at a valuation discount relative to competitors because of its smaller size and higher leverage, the report said.
