ewsba.se
Written by Rich Smith for The Motley Fool->
Norwegian Cruise beat earnings this morning, but investors are selling the stock anyway.
The Iran War is dragging down guidance for the rest of 2026.
Norwegian Cruise Line Holdings (NYSE: NCLH) tumbled 8.5% through 10:35 a.m. ET after reporting mixed earnings -- and lousy guidance -- this morning.
Heading into the report, Wall Street analysts expected Norwegian to earn $0.15 per share on sales of $2.36 billion. The cruise line stock managed to beat the earnings forecast, earning $0.23, but it hit shoals on sales, coming up just short at $2.33 billion.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Sales may have missed estimates, but Norwegian still grew them 10% year over year. Earnings of positive $0.23 per share completely flipped the script on last year's Q1 loss of $0.09 per share, as Norwegian worked hard to cut about $125 million in annual "long-term structural" costs.
These should be permanent savings that will boost Norwegian's profits in future years -- but future years aren't what investors are worrying about. Rather, they're worried about the Iran War, the Strait of Hormuz, and the prospect of $150 oil in the near future.
And all three are already having an effect on Norwegian's near-term business.
Citing rising oil prices and higher fuel costs for its ships, Norwegian slashed its 2026 earnings forecast. Non-GAAP earnings per share will probably range from $1.45 to $1.79, versus the $2.12 per share that Wall Street was hoping for. Worse, according to Norwegian, every 1% rise in the cost of fuel for its ships as the Iran war-slash-embargo-blockade drags on could cost the company an additional $0.09 per share in lost profit.
Granted, if the Iran conflict ends early and oil prices fall, every 1% change in fuel prices will add $0.09. But it's the downside risk investors are focused on today.
Before you buy stock in Norwegian Cruise Line, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Norwegian Cruise Line wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,473!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,605!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 4, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This data feed is not available at this time.