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Factors to Note Ahead of Norwegian Cruise (NCLH) Q3 Earnings
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report third-quarter 2022 results on Nov 8, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 39%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 71 cents per share, indicating an improvement of 67.3% from a loss of $2.17 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,576 million. The projection suggests an increase of 929.4% from the year-ago quarter’s reported figure.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s third-quarter performance is likely to have benefited from the resumption of cruise services, strong demand and improved booking trends. During the previous quarter, the company reported a sustained boost in booking volumes on account of changes in its health and safety protocols. This includes relaxed testing protocols (regardless of sailing length) and removed mandatory vaccination requirements. During the previous quarter, the company’s advanced ticket sales build rose more than 40% to $1.5 billion. Also, it stated that It stated that pricing for the full-year sailings remained higher than pre-pandemic levels. Given the pent-up demand coupled with an emphasis on reducing friction and travel-related hassles for its guests, the momentum is likely to have continued in the third quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the third-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $1,133 million and $513 million compared with $86 million and $67 million, respectively, reported in the prior-year quarter.
The Russia-Ukraine conflict on premium-priced Baltic and Eastern Mediterranean itineraries is likely to have affected pricing in the third quarter. This and inflationary pressures and global supply chain constraints are likely to have dented the company’s performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not 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. But that's not the case here.
Earnings ESP: Norwegian Cruise has an Earnings ESP +21.13%. 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 #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Shares of BJ's Wholesale Club have increased 25% in the past year. BJ’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 16.5%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 7.8% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Caleres, Inc. (CAL - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3.
Shares of Caleres have gained 2.2% in the past year. CAL’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 34.9%.
Image: Bigstock
Factors to Note Ahead of Norwegian Cruise (NCLH) Q3 Earnings
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report third-quarter 2022 results on Nov 8, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 39%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 71 cents per share, indicating an improvement of 67.3% from a loss of $2.17 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,576 million. The projection suggests an increase of 929.4% from the year-ago quarter’s reported figure.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-eps-surprise | Norwegian Cruise Line Holdings Ltd. Quote
Let's look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s third-quarter performance is likely to have benefited from the resumption of cruise services, strong demand and improved booking trends. During the previous quarter, the company reported a sustained boost in booking volumes on account of changes in its health and safety protocols. This includes relaxed testing protocols (regardless of sailing length) and removed mandatory vaccination requirements. During the previous quarter, the company’s advanced ticket sales build rose more than 40% to $1.5 billion. Also, it stated that It stated that pricing for the full-year sailings remained higher than pre-pandemic levels. Given the pent-up demand coupled with an emphasis on reducing friction and travel-related hassles for its guests, the momentum is likely to have continued in the third quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the third-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $1,133 million and $513 million compared with $86 million and $67 million, respectively, reported in the prior-year quarter.
The Russia-Ukraine conflict on premium-priced Baltic and Eastern Mediterranean itineraries is likely to have affected pricing in the third quarter. This and inflationary pressures and global supply chain constraints are likely to have dented the company’s performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not 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. But that's not the case here.
Earnings ESP: Norwegian Cruise has an Earnings ESP +21.13%. 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 #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of BJ's Wholesale Club have increased 25% in the past year. BJ’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 16.5%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 7.8% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Caleres, Inc. (CAL - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank #3.
Shares of Caleres have gained 2.2% in the past year. CAL’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 34.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.