Norwegian sails higher after record Q2 revenue and reaffirmed full-year guidance

Shares of Norwegian Cruise Line rose over 11% in premarket trading after the cruise operator posted so-so Q2 results and reaffirmed its full-year guidance.

That may not sound too impressive, but it helps investors alleviate concerns after Norwegian in its last earnings report warned of “choppiness” in demand when it came to Americans booking European cruises. Now, management is touting record bookings over the past few months.

Adjusted earnings per share came in at $0.51 for the quarter, in line with Wall Street’s estimates and the company’s previous guidance. Meanwhile, revenue reached $2.51 billion, shy of the $2.55 billion analysts estimated, per FactSet, but still a record for the second quarter.

Norwegian also said that it’s seeing a positive turnaround for all three of its brands (Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises) as the company sees a historically high level of bookings. Looking ahead, the cruise operator reaffirmed its full-year earnings guidance of $2.05, ahead of Wall Street’s forecast of $2.02. 

Norwegian’s results come days after rival Royal Caribbean also topped Q2 estimates, but shares slipped after the cruise giant’s strong Q2 results and improved full-year guidance weren’t enough to wow investors.

Prior to Thursday’s premarket trading pop, Norwegian shares were down nearly 10% year to date.