Norwegian Cruise Stock Surges After Earnings. Why Bookings Look Buoyant.

Norwegian Cruise Line stock has lagged behind its larger peers in 2025 so far. (Chandan Khanna/AFP via Getty Images)

Norwegian Cruise Line Holdings stock was climbing early Thursday after the company reported earnings in line with expectations amid healthy demand for its trips.

The company reported second-quarter adjusted earnings of 51 cents a share on revenue of $2.52 billion. Analysts were expecting adjusted earnings of 51 cents on revenue of $2.55 billion, according to a FactSet poll.

Norwegian reiterated its full-year guidance for adjusted earnings per share of $2.05, up 16% from the previous year, and noted a rebound in demand for third-quarter long-haul extended European trips.

“Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend,” said CEO Harry Sommer in a statement.

Norwegian shares were up 11% at $26.07 early trading, having fallen around 9% this year so far through to Wednesday’s close.

Fellow cruise line Royal Caribbean beat expectations and raised the floor for its full-year guidance in its earnings report earlier this week, but the stock dropped following a run up of more than 50% in 2025 so far. Larger peer Carnival rose last month after it said bookings were strong and it lifted its annual profit outlook.

Norwegian has been the laggard among its cruise peers this year so far, after striking a relatively downbeat tone on demand in its first-quarter report.

“We expect shares will see a nice pop today, not so much from results and guide that were amazing (they weren’t)… rather from a stock/company that has low expectations from investors,” wrote Truist Securities analyst Patrick Scholes in a research note.

Scholes has a Buy rating and $27 target price on Norwegian stock.

One criticism Norwegian has faced from Wall Street is its relative lack of private-island facilities compared with its two larger rivals. On Wednesday, Norwegian said it would upgrade its Great Stirrup Cay island in the Bahamas with a nearly six-acre water park in the summer of 2026.

“Enhanced private islands for peers, especially for [Royal Caribbean], have been a major reason why [Norwegian’s] earnings growth has lagged behind that of peers’ and we envision next year’s opening as a positive catalyst for earnings growth and possibly the valuation multiple,” Scholes wrote.

Write to Adam Clark at adam.clark@barrons.com