Shares of Norwegian Cruise Line Holdings Ltd. NCLH,
rose 2.3% in premarket trading Tuesday, even after the cruise operator reported a wider-than-expected loss and revenue that missed expectations by a wide margin, citing challenges from the omicron variant and Russia’s invasion of Ukraine, but provided an upbeat bookings outlook. Net losses narrowed to $982.7 million, or $2.35 a share, from $1.37 billion, or $4.16 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of $1.82 compared with the FactSet loss consensus of $1.54. Revenue rose to $521.9 million from $3.1 million a year ago, and missed the FactSet consensus of $737.5 million. Total cruise operating expenses jumped 266.1% to $735.4 million, primarily due to cruise resumptions, but also higher payroll, fuel and food costs. The company had 85% of its capacity operating at the end of the quarter, but occupancy was 48% as omicron caused operational challenges and certain port closures, while the Russia-Ukraine war led to the cancellation or modification of about 60 sailings. The company said the negative impact on bookings from omicron and the Ukraine war was “short-lived,” and booking volumes have rebounded back to pre-omicron levels and have approached the pace need to sail at historical load factor levels. The company said it could not provide a financial outlook given uncertainty surrounding COVID-19 and the Ukraine war, but it does expect a net loss for the second quarter. The stock has dropped 23.1% year to date through Monday, while the S&P 500 SPX,
has shed 16.3%.
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