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What's in Store for Norwegian Cruise (NCLH) Q4 Earnings?
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is likely to have witnessed year-over-year decline in fourth-quarter 2020 earnings. In the last reported quarter, the company reported a negative earnings surprise of 4.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of $2.31 per share. In the prior-year quarter, the company reported earnings per share of 73 cents. The consensus mark for revenues is pinned at $9.8 million, suggesting a decline of 99.3% from the year-ago reported figure.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is 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 quarterly revenues.
Norwegian Cruise is bearing the brunt of high expenses for quite some time now. Costs associated with the suspension of cruise voyages and continued payment of protected commissions and crew salaries are adding to woes. The company experienced a cash burn of approximately $150 million a month, on average, during third-quarter 2020. The company anticipates to incur cash burn of nearly $175 million per month during fourth-quarter 2020. Notably, timing of certain cash interest expense payments that are anticipated to be nearly $120 million is likely to result in sequential increase in cash burn during fourth-quarter 2020. Meanwhile, quarterly earnings are likely to have been negatively impacted by the cash burn.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Our proven model 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post earnings beat in the upcoming releases:
Discovery, Inc. has a Zacks Rank #3 and an Earnings ESP of +1.39%.
Hilton Grand Vacations Inc. (HGV - Free Report) has an Earnings ESP of +164.29% and a Zacks Rank #3.
Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +45.46%.
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What's in Store for Norwegian Cruise (NCLH) Q4 Earnings?
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is likely to have witnessed year-over-year decline in fourth-quarter 2020 earnings. In the last reported quarter, the company reported a negative earnings surprise of 4.9%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of $2.31 per share. In the prior-year quarter, the company reported earnings per share of 73 cents. The consensus mark for revenues is pinned at $9.8 million, suggesting a decline of 99.3% from the year-ago reported figure.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is 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 quarterly revenues.
Norwegian Cruise is bearing the brunt of high expenses for quite some time now. Costs associated with the suspension of cruise voyages and continued payment of protected commissions and crew salaries are adding to woes. The company experienced a cash burn of approximately $150 million a month, on average, during third-quarter 2020. The company anticipates to incur cash burn of nearly $175 million per month during fourth-quarter 2020. Notably, timing of certain cash interest expense payments that are anticipated to be nearly $120 million is likely to result in sequential increase in cash burn during fourth-quarter 2020. Meanwhile, quarterly earnings are likely to have been negatively impacted by the cash burn.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Norwegian Cruise Line Holdings Ltd. price-eps-surprise | Norwegian Cruise Line Holdings Ltd. Quote
What the Zacks Model Unveils
Our proven model 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Norwegian Cruise has an Earnings ESP +1.90%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: The company has a Zacks Rank #3.
Other Stocks with Favorable Combination
Here are some other stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post earnings beat in the upcoming releases:
Discovery, Inc. has a Zacks Rank #3 and an Earnings ESP of +1.39%.
Hilton Grand Vacations Inc. (HGV - Free Report) has an Earnings ESP of +164.29% and a Zacks Rank #3.
Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +45.46%.
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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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