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Norwegian Cruise Line Q3 Revenue Improves, But Earnings Miss View

Norwegian Cruise Line Holdings Ltd. (NCLH), a global cruise company with a combined fleet of 28 ships and 60,000 berths, on Wednesday reported financial results for the third quarter ended September 30, 2021 that showed improved revenue as cruises resumed. However, adjusted earnings missed the Street estimates. The company had approximately 40 percent of its capacity operating by the end of the third quarter of 2021 with the fleet in service being cash flow positive in the quarter.

Net loss for the period was $845.9 million or $2.29 per share as compared to $677.4 million or $2.50 per share in the prior period.

Adjusted net loss for the period was $801.4 million or $2.17 per share as compared to $638.7 million or $2.35 per share in 2020. On average, 11 analysts polled by Thomson Reuters were expecting the company to report a loss of $2.09 per share. Analysts typically exclude one-time items.

Revenue increased to $153.1 million from $6.5 million in the earlier period as cruise voyages resumed in the quarter. On average, 9 analysts polled by Thomson Reuters were expecting the company to report revenues of $198.42 million.

Operating loss increased to $689.1 million, from $517.8 million in the year-ago period.

The company expects 75 percent of capacity to resume sailing by year-end and to be positive on operating cash flows in late first quarter of 2022.

The company has given a net loss guidance for the fourth quarter and full year ending December 31, 2021 and expects to report a net loss until it is able to resume regular voyages. Based on current conditions, the company expects to be profitable for the second half of 2022.

Shares of Norwegian Cruise Line Holdings are currently trading at $26.13, down $0.70 or 2.61 percent from previous close.

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