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What's in Store for Norwegian Cruise's (NCLH) Q3 Earnings?
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is likely to have witnessed a year-over-year decline in third-quarter 2020 earnings. In the last-reported quarter, the company delivered a negative earnings surprise of 26.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $2.24 per share. In the prior-year quarter, the company reported earnings per share of $2.23. The consensus mark for revenues is pinned at $0.8 million, suggesting a decline of 100% from the year-ago reported figure.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Norwegian Cruise’s third-quarter results are likely to reflect the effects of the coronavirus pandemic. Notably, cancellations of cruises due to the crisis along with change in booking patterns are likely to get reflected in the revenue results. Meanwhile, quarterly earnings are likely to have been negatively impacted by the cash burn. The company’s expected cash burn is $160 million per month in the quarter.
Despite the fact that the virus triggered a catastrophe in terms of lives lost and financials, Norwegian Cruise has been resilient enough to navigate through the uncertain times. Notably, the company took significant actions to preserve cash and secure additional financing to maximize liquidity.
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 +4.28%. 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 #5 (Strong Sell).
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
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What's in Store for Norwegian Cruise's (NCLH) Q3 Earnings?
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is likely to have witnessed a year-over-year decline in third-quarter 2020 earnings. In the last-reported quarter, the company delivered a negative earnings surprise of 26.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $2.24 per share. In the prior-year quarter, the company reported earnings per share of $2.23. The consensus mark for revenues is pinned at $0.8 million, suggesting a decline of 100% from the year-ago 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
Factors at Play
Norwegian Cruise’s third-quarter results are likely to reflect the effects of the coronavirus pandemic. Notably, cancellations of cruises due to the crisis along with change in booking patterns are likely to get reflected in the revenue results. Meanwhile, quarterly earnings are likely to have been negatively impacted by the cash burn. The company’s expected cash burn is $160 million per month in the quarter.
Despite the fact that the virus triggered a catastrophe in terms of lives lost and financials, Norwegian Cruise has been resilient enough to navigate through the uncertain times. Notably, the company took significant actions to preserve cash and secure additional financing to maximize liquidity.
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 +4.28%. 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 #5 (Strong Sell).
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +400% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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