02:26 PM EDT, 05/02/2024 (MT Newswires) -- Royal Caribbean Group (RCL) and Norwegian Cruise Line Holdings ( NCLH ) shares failed to respond to the "solid" Q1 earnings, as expectations ran high going into the earnings, BofA Securities said in a note Thursday.

Norwegian Cruise Line ( NCLH ) shares declined around 15% following the Q1 results as "expectations had meaningfully risen leading into the results," the firm said.

The company's Q2 outlook was "well-aligned" with consensus and management's general demand commentary was "encouraging," BofA wrote.

Meanwhile, the firm noted that Royal Caribbean Group had again raised its yearly guidance to account for strength in demand and operational performance.

The firm said it was raising its Q2 and full-year earnings estimates for Royal Caribbean to $2.77 and $11.21 per share from the previous forecast of $2.51 and $10.13 per share, respectively, both ahead of Royal Caribbean Group's own guidance given the company's "trend of beating expectations."

BofA maintained its neutral rating for both companies, but raised its price objective on Royal Caribbean Group to $145 from $135, and no change to Norwegian Cruise Line's ( NCLH ) price target of $20.

Price: 138.26, Change: +0.74, Percent Change: +0.54