Norwegian Cruise Line Holdings (NCLH) stock fell on Wednesday after the company reported weaker-than-expected first quarter earnings and indicated a slowdown in demand.
Shares were down over 9% on Wednesday morning.
Cruise lines like Royal Caribbean Cruises (RCL) have been saying that demand and bookings are holding up well, even with concerns that people might start spending less on travel.
But Norwegian’s earnings report tells a different story, pointing to a drop in bookings over the next year.
The cruise operator reported adjusted earnings of $0.07 per share on revenue of $2.13 billion, falling short of Wall Street forecasts of $0.09 per share and $2.15 billion in revenue.
For the second quarter, the company is expecting adjusted earnings of $0.51 per share, falling below expectations of $0.52 per share. It also forecast occupancy at 102.5% for the full year, missing estimates of 103.5%.
Norwegian attributed the shift to recent booking patterns and a more challenging macroeconomic environment.
“While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,” CEO Harry Sommer said in a statement.