Shares of Miami-based cruise services firm Norwegian Cruise Line (NCLH) gained nearly 3% on Friday after the company reported a narrower-than-expected loss for the second quarter of 2021. Norwegian operates cruises in the Caribbean, Bermuda, Central America, North America, Baltic and Mediterranean regions.
The company reported an adjusted loss of $1.93 per share, lesser than the year-ago loss of $2.78 per share and the Street’s estimate of a loss of $1.99 per share. Total revenues decreased to $4.37 million from $16.9 million in the second quarter of 2020. Analysts had expected the company to report revenues of $9.44 million during the quarter.
Passenger ticket revenue totaled $1.6 million, down from $13.8 million in the previous year. Onboard and other revenues amounted to $2.8 million, lower than $3.1 million reported in the year-ago quarter. (See Norwegian stock chart on TipRanks)
The Executive Vice-President and Chief Financial Officer of Norwegian Cruise Line, Mark A. Kempa, said, “Recognizing that the global public health environment remains fluid, we continue to focus on controlling costs, balancing our cash needs and enhancing our liquidity position to maintain financial flexibility.”
Shares of the company gained 1% to reach $24.64 in early trade on Monday.
Two months ago, J.P. Morgan analyst Brandt Montour reiterated a Buy rating on the stock and raised the price target to $38 from $35 (52.7% upside potential). In a research note to investors, the analyst said, “Positive bookings momentum and pricing continues for the broader cruise industry.”
Overall, the stock has a Moderate Buy consensus based on 3 Buys, 2 Holds and 1 Sell. The average Norwegian Cruise Line price target of $33.25 implies 33.6% upside potential. The company’s shares have gained 64.5% over the past year.
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