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Why Is Norwegian Cruise Line Stock Sinking Today?

Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) reported first-quarter fiscal 2024 sales growth of 20.3% year-on-year to $2.191 billion on 8% capacity growth, missing the consensus of $2.24 billion. Operating income for the quarter was $218.39 million, compared to $10.72 million a year ago, and the margin expanded by 938 bps to 10% Adjusted EPS improved to $0.16 from $(0.30) a year ago, beating the consensus of $0.11. Adjusted EBITDA almost doubled to $463.99 million, and the margin expanded by 832 bps to 21.2%. Occupancy for the quarter was 104.6%, and total revenue per Passenger Cruise Day increased ~8% YoY. Gross margin per Capacity Day was up 53% YoY.  NCLH’s total debt was $13.7 billion. Net Leverage declined a full turn from ...