Why Norwegian Cruise Lines Plunged 25% in August

Shares of Norwegian Cruise Lines (NYSE: NCLH) plunged 24.9% in the month of August, according to data from S&P Global Market Intelligence. The cruise line stock reported second-quarter earnings on August 1, and investors responded by selling off the stock in a big way.

At first glance, it appears Norwegian's results were actually quite good. However, with the stock having had a massive run from April through July, a somewhat conservative outlook for Q3 earnings per share (EPS) sent investors into profit-taking mode.

In Q2, Norwegian saw revenue increase 85.7% to $2.21 billion, with adjusted (non-GAAP) EPS of $0.30 compared with an adjusted net loss per share of $1.14 in the prior-year quarter. Both figures beat expectations.

Source Fool.com