Norwegian Cruise Line warns coronavirus having 'adverse impact'
The cruise operator says coronavirus has known impact of 75 cents a share
Norwegian Cruise Line Holdings reported better-than-expected fourth-quarter results on Thursday but warned the coronavirus outbreak will dent its bottom line.
The Miami-based cruise operator posted a quarterly profit of $121.3 million, or 56 cents a share, down 21.5 percent from a year ago. Revenue rose 7.2 percent to $1.5 billion, beating the $1.43 billion that analysts surveyed by Refintiv were expecting.
For the full-year, Norwegian's profit fell 2.6 percent year-over-year to $930.2 million, or $4.30 a share, as adjusted net income was unchanged from a year ago at $1.1 billion. The results included a 67 cent per-share impact from Hurricane Dorian and the cessation of voyages to Cuba.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NCLH | NORWEGIAN CRUISE LINE HOLDINGS LTD. | 18.02 | +0.55 | +3.15% |
“As a result of the strong global demand for cruises witnessed throughout 2019, we entered 2020 in the best-booked position and at prices higher than last year’s record levels,” CEO Frank Del Rio said in a statement. “This trend continued through late January until the COVID-19 outbreak began having an adverse impact on our business.”
Norwegian said the coronavirus outbreak’s known direct impact on full-year 2020 adjusted earnings is 75 cents a share. That includes customer compensation and 40 canceled, modified or redeployed Asia voyages.
Looking ahead, excluding both known and unknown impacts from the coronavirus outbreak, Norwegian expects first-quarter adjusted earnings per share of about 48 cents a share. For the full-year, the company projects adjusted earnings of $5.40 to $5.60 a share.
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Norwegian has fallen 10.9 percent year-to-date, compared with the S&P 500's 4.8 percent gain.