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Cruise shares still to recover from fall triggered by NCLH interims

Shares in the listed three major cruise shipping groups still have not recovered from fall that started with the weaker than forecast interims of Norwegian Cruise Line Holdings (NCLH) on 09 May.

NCLH reported earnings per share of $0.27, well below its own forecast of $0.36 when it published its final quarter and full year 2016 results. The fresh figure was also below the $0.29 the company had reached in the first quarter of 2016.

Shares in NCLH set a recent high at about $56 on 9 May, they closed at $48.07 in New York on 17 May, when the overall market had suffered deep losses. However, the wider market performed well prior to the turmoil on Wednesday.

Carnival plc in London closed at £46.74, well below its recent high at £48.29 on 9 May. The FTSE100 share index of leading shares set record highs earlier in the week. meanwhile,  Carnival Corporation finished at $59.75 in New York on 17 May after a recent high at $63.22 eight days earlier.

Royal Caribbean Cruises, Ltd (RCCL) had hit a recent high of about $110 on 1 May; it closed at $103.65 in New York on 17 May.

NCLH warned about challenges in China due to political tension between that country and South Korea. However, it raised its earnings guidance for the full year, citing strong demand elsewhere as the reason.

The three months to the end of may interims of Carnival Corporation & plc – its financial year runs to 30 November –should cast some light on development of the industry and give investors guidance regarding how to value cruise shipping shares.