Norwegian Cruise Line shares stumble on lowered guidance

Norwegian Cruise Line's Norwegian Dawn at the Boston Cruise Terminal in Boston.
Paul Marotta | Getty Images
Norwegian Cruise Line's Norwegian Dawn at the Boston Cruise Terminal in Boston.

The cruise stocks hit a rough patch on Tuesday after Norwegian Cruise Line lowered its outlook.

The cruise operator said it now sees adjusted full-year earnings between $3.35 and $3.45, well below analyst expectations of $3.72, according to Thomson Reuters.

The stock ended the day down more than 11 percent. Shares of Carnival and Royal Caribbean Cruises fell 3 percent and 6 percent, respectively, in sympathy.

Frank Del Rio, president and CEO of Norwegian, cited four main reasons for revising its guidance, including "continued weak demand from our core North American consumer for European sailings at a time when half of our fleet is deployed in the region, including eight of our highest yielding ships."

Del Rio also said Norwegian's outlook was impacted by "adjustment to earlier pricing expectations for Miami-based Caribbean itineraries," attempts to minimize discounting and a weaker British pound, following the U.K. vote to leave the European Union.

Norwegian reported adjusted earnings of 85 cents a share on $1.187 billion in revenue. Wall Street had expected earnings of 83 cents per share on revenues of $1.219 billion, according to a Thomson Reuters consensus estimate.

The cruise stocks have had a difficult year. Norwegian has fallen more than 35 percent in 2016, while Carnival and Royal Caribbean have fallen 17 percent and nearly 32 percent, respectively.