Norwegian Cruise Line Holdings Ltd. (NCLH Quick QuoteNCLH - Free Report) is scheduled to report second-quarter 2021 results on Aug 6, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 1.5%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of $2.00 per share, compared with prior-year quarter’s loss of $2.78.

The consensus mark for revenues stands at nearly $6.8 million, suggesting a decline of 59.8% from the year-ago reported figure.

Factors at Play

Norwegian Cruise’s second-quarter results are likely to reflect the impact of pandemic and travel restrictions along with closure of key ports. Cancellations of cruises due to the crisis, and change in booking patterns might get reflected in second-quarter top line. The coronavirus pandemic has badly impacted the company’s booking. While overall booking volumes remain below historical levels, it has been registering solid demand for future cruise vacations.

The Zacks Consensus Estimate for passenger ticket revenues, and onboard and other revenues is currently pegged at $4.5 million and $2.5 million, indicating a decline of 67.5% and 19.1%, respectively, from the prior-year quarter’s levels.

Meanwhile, quarterly earnings are likely to have been negatively impacted by cash burn. The company experienced a cash burn of approximately $190 million a month, on average in fourth-quarter 2020. The company's monthly average cash burn for first-quarter 2021 was approximately $190 million. For second-quarter 2021, it expects the average cash burn rate to temporarily remain elevated at approximately $190 million per month.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Norwegian Cruise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Norwegian Cruise has an Earnings ESP 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat.

PlayAGS, Inc. (AGS Quick QuoteAGS - Free Report) has an Earnings ESP of + 43.55% and a Zacks Rank #2.

Penn National Gaming, Inc. (PENN Quick QuotePENN - Free Report) has an Earnings ESP of + 26.32% and a Zacks Rank #2.

Accel Entertainment, Inc. (ACEL Quick QuoteACEL - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank #2.