Shares of Royal Caribbean Cruises Ltd (NYSE:RCL) and Carnival Corp (NYSE:CCL) are sinking Tuesday after Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) reported worse-than-expected financial results and issued guidance below analyst estimates.
Norwegian reported second-quarter revenue of $1.2 billion, which missed the estimate of $1.26 billion, according to data from Benzinga Pro. The cruise line company reported a second-quarter adjusted net loss of $1.14 per share, which missed the estimate for a loss of 86 cents per share.
Norwegian said it expects third-quarter revenue to be between $1.5 billion and $1.6 billion versus the estimate of $1.88 billion. Occupancy is expected to be in the low 80% range.
The company said it expects to report a net loss in the third quarter as a result of the COVID-19 pandemic, the effects of the Russia-Ukraine conflict and current macroeconomic conditions.
Carnival and Royal Caribbean shares traded lower on the Norwegian report. Carnival is the world's largest global cruise company. Royal Caribbean is the second largest and Norwegian ranks third.
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RCL, CCL Price Action: Royal Caribbean was down 3.06% at $39 and Carnival was down 3% at $9.71 at press time, according to Benzinga Pro.
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