FINWIRES · TerminalLIVE
FINWIRES

Norwegian Cruise Line Lowers 2026 Earnings Outlook Amid Middle East Conflict Headwinds

By

Norwegian Cruise Line (NCLH) lowered its full-year earnings outlook on Monday amid higher fuel costs and weak consumer demand due to the Middle East conflict, while the cruise operator's first-quarter revenue fell short of market estimates.

The company now expects adjusted earnings to come in between $1.45 and $1.79 per share for 2026, down from its previous projection of $2.38. The current consensus on FactSet is for non-GAAP EPS of $2.10. The stock fell 7.3% in the most recent premarket activity.

Norwegian Cruise said it's seeing headwinds related to disruptions in the Middle East, including high fuel expense and soft demand trends as customers reevaluate their travel plans, especially for Europe. These headwinds have impacted the company's ability to accelerate bookings after it entered 2026 behind its targeted booking pace.

Energy prices have soared as the US-Israel war with Iran curtailed shipments through the crucial Strait of Hormuz. The conflict paused following a recent ceasefire between Washington and Tehran, but a framework for a permanent truce is yet to be reached.

"As we move through the year, we will continue to manage costs and focus on revenue growth to align resources with the high-growth, high value areas of the business," Chief Executive John Chidsey said in a statement.

For the March quarter, the company's revenue inclined 10% to $2.33 billion, but trailed the Street's view for $2.36 billion. Adjusted EPS jumped to $0.23 from $0.10 the year before, topping the average analyst estimate of $0.14.

Passenger ticket revenue grew to $1.54 billion from $1.42 billion in the prior-year quarter, while onboard and other sales increased to $788.9 million from $708.9 million. Occupancy improved to 103.8% from 101.5%, while total cruise operating expenses rose to $1.38 billion from $1.3 billion.

"During the quarter, we acted with urgency to simplify, optimize, and streamline the organization, including executing SG&A savings initiatives totaling $125 million in expected run rate savings," according to Chidsey. "These are long-term structural actions that we believe will help offset near-term pressures and position the business for stronger performance over time."

For the ongoing three-month period, Norwegian Cruise anticipates adjusted EPS of $0.38, while the Street is looking for $0.51.

Related Articles

US Markets

ADB Pledges $70 Billion For Energy, Digital Networks Across APAC as Middle East Conflict Batters Outlook

The Asian Development Bank is committing $70 billion to support new energy and digital infrastructure initiatives across the Asia-Pacific region by 2035.ADB President Masato Kanda announced the pledge on Sunday during the lender's annual meeting in Uzbekistan."Energy and digital access will define the region's future," said Kanda. "These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to hundreds of millions of people."The pledge comes as the ADB sharply downgraded its forecast for the APAC region, citing energy disruptions from the ongoing Middle East conflict.On Wednesday, the ADB slashed its GDP growth outlook for developing Asia and the Pacific to 4.7% in 2026 from the previous 5.1% forecast.Inflation for 2026 is projected to accelerate to 5.2% in 2026 from 3% in 2025, before easing to 4.1% in 2027."Our revised outlook is a significant downward revision for growth and a sharp increase in inflation following a special update to reflect the deepening crisis," Kanda said at the time.The bank's new outlook assumes that oil prices average around $96 a barrel in 2026, well above the $69 per barrel average in January and February before the Middle East conflict. The bank expects oil prices to ease to around $80 per barrel in 2027."We are confronting systemic, long-lasting disruptions to global energy and trade networks, not just temporary volatility. ADB will remain an agile partner in protecting the region's economy; tracking fast-moving risks, and moving with urgency to scale up our support," Kanda added.Diesel prices across several Southeast Asian countries have increased by more than 100% since late February, the ADB said in its updated outlook report.The ADB also noted in its Wednesday report that the energy shock is also affecting fertilizer prices, which it said could add to food inflation, particularly for economies most dependent on Middle East imports.Against that backdrop, the ADB is committing $70 billion to build new energy and digital infrastructure in Asia and the Pacific by 2035.The largest investment, worth $50 billion, will be allocated towards cross-border power infrastructure to unlock renewable energy at scale, the ADB said.The project will focus on transmission and grid integration, including cross-border lines, substations, storage, and grid digitalization, according to the lender.By 2035, the bank aims to integrate about 20 gigawatts of renewable energy across borders, connect 22,000 circuit-kilometers of transmission lines, and cut regional power sector emissions by 15%, while improving energy access for around 200 million people.The remaining $20 billion will fund the Asia-Pacific Digital Highway, targeting digital corridors, data infrastructure, and AI-ready economies.The project aims to bring first-time broadband access to 200 million people and cut connectivity costs in remote and landlocked areas by about 40%.The South Korean government will back a new Center for AI Innovation and Development in Seoul with a $20 million contribution. The center will aim to train about 3 million people in digital and AI-related skills by 2035.Separately on Sunday, the ADB also unveiled a Critical Minerals-to-Manufacturing Financing Partnership Facility designed to help the region move beyond mining into higher-value industries such as processing, manufacturing, and recycling.Japan committed $20 million to the grant window, the UK contributed $1.6 million, and the Korea Eximbank and the Korean Trade Insurance Corporation each signed $500 million memorandums as the facility's first partners.

ASX 200^BSE^HNX^HOSEHang Seng^JKSEFTSE Bursa Malaysia KLCIKOSPINikkei 225^NSE^NZ50^PSEI^SETShanghai Composite^STI^SZSETaiwan Weighted
US Markets

Nasdaq, S&P 500 Log Record Finish, Extend Streak of Weekly Gains

The Nasdaq Composite and the S&P 500 reached new peaks on Friday, scoring their fifth consecutive weekly gains.The Nasdaq Composite rose 0.9% to 25,114.4, while the S&P 500 advanced 0.3% to 7,230.1, both notching record closing highs. The Dow Jones Industrial Average lost 0.3% to 49,499.3. Barring technology and consumer discretionary, all sectors ended in the red, led by energy.This week, the Nasdaq gained 1.1%, while the S&P 500 added 0.9%, their fifth weekly rise in a row. The Dow is up 0.6% after last week's 0.4% loss.Apple (AAPL) shares jumped 3.2% on Friday, the second-biggest gainer on the Dow. Late Thursday, the tech giant logged fiscal second-quarter results above Wall Street's estimates as iPhone revenue came in stronger than expected.Apple's fiscal third-quarter revenue guidance was well above the Street's estimates despite supply constraints for Mac models that will likely continue for several months, Wedbush Securities said in a note.Several other tech names advanced, with Oracle (ORCL) up 6.5%, among the top gainers on the S&P 500, while Salesforce (CRM) climbed 4.1%, the best performer on the Dow. Shares of Intel (INTC), Microsoft (MSFT) and Amazon.com (AMZN) also rose.In other company news, Exxon Mobil (XOM) and Chevron (CVX) reported year-over-year declines in their first-quarter earnings amid supply disruptions due to the Middle East war, though the figures came in ahead of the Street's estimates. Exxon shares fell 1%, while Chevron lost 1.4%.West Texas Intermediate crude oil was down 2.7% at $102.20 per barrel in Friday late-afternoon trade, while Brent dropped 1.7% to $108.57. Both benchmarks, however, were on track for their second consecutive weekly advance."Brent crude remains elevated after touching a fresh wartime high late in April, supported by worsening physical tightness and rising concern about outright shortages in some regions," Saxo Bank Head of Commodity Strategy Ole Hansen said in a report. "The near closure of the Strait of Hormuz continues to prolong a disruption that is steadily tightening global energy markets, with flows through one of the world's most important oil arteries still severely restricted."US President Donald Trump said he is displeased with a new peace offer from Iran, CNBC reported Friday.Israel struck the Habbouch town in southern Lebanon, CNN reported, citing Lebanon's health ministry.US Treasury yields were mixed, with the 10-year rate up 1.3 basis points at 4.39% and the two-year rate little changed at 3.88%.In economic news, the US manufacturing sector saw continued growth in April, though inflationary pressures intensified amid disruptions caused by the Middle East conflict, separate surveys by the Institute for Supply Management and S&P Global (SPGI) showed.Three Federal Reserve officials who wanted language changes in the April monetary policy statement said Friday that risks to inflation and employment didn't warrant an inclusion of the so-called easing bias.On Wednesday, regional presidents Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas supported the Fed's decision to keep its benchmark lending rate steady, but opposed including an easing bias in the Federal Open Market Committee statement.Gold was down 0.1% at $4,623.30 per troy ounce, while silver climbed 2.6% to $75.95 per ounce.

Dow JonesNasdaq CompositeS&P 500$AAPL$AMZN$CRM$CVX$INTC$MSFT$ORCL$SPGI$XOM
US Markets

Roblox Growth to Moderate Near Term Due to Age-Check Rollout, UBS Says

Roblox's (RBLX) growth will likely decelerate in the near term amid engagement headwinds tied to a mandatory age-check rollout, UBS Securities said in a Friday client note.The video game platform reported a first-quarter loss late Thursday as bookings fell short of consensus estimates. The company implemented an age-check feature for accessing chat, a move that slowed new user acquisition and hampered growth, Roblox said in a shareholder letter.In addition, management tempered growth expectations for full-year revenue and bookings."We became the first large online gaming platform to introduce age checks to access chat on a global basis," Chief Executive David Baszucki told analysts during an earnings call late Thursday.The stock plunged 18% ahead of market close on Friday, and is down 44% so far this year."We still see Roblox as a beneficiary of secular trends in gaming and expect platform enhancements to support its ability to drive user growth/spend over time," UBS analysts including Christopher Schoell wrote in the note. "That said, we remain neutral given expectations for moderating near-term growth and engagement headwinds from age verification/regulatory shifts."UBS slashed its price target for Roblox shares to $49 from $74.For the second quarter, Roblox guided to 8% to 12% bookings growth, well below Wall Street's 29% estimate, according to the brokerage."We believe platform enhancements/content breadth will support Roblox's ability to drive user growth long-term, particularly in overseas markets where headroom remains," Schoell said. "That said, we see a transition period in the coming quarters with 49% of global users still remaining unverified, (versus) 55% last (quarter)."Price: $45.51, Change: $-9.75, Percent Change: -17.64%

$RBLX