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Factors Setting the Tone for Carnival's (CCL) Q2 Earnings

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Carnival Corporation (CCL - Free Report) is scheduled to report second-quarter fiscal 2021 business update on Jun 24. In the last reported quarter, the company reported a negative earnings surprise of 7.8%.

Q2 Estimates

The Zacks Consensus Estimate for the fiscal second-quarter bottom-line is pegged at a loss of $1.68 per share. In the prior-year quarter, the company reported a loss per share of $3.03. The consensus mark for revenues stands at $128.9 million, suggesting a decline of 82.6% from the year-ago reported figure.

Factors to Note

Carnival’s fiscal second-quarter results are likely to reflect the adverse impacts of the coronavirus pandemic. Cruise cancellations due to pandemic are likely to have hurt the company’s performance. Further, decline in passenger ticket revenues as well as onboard and other revenues on account of limited cruise operations might have weighed on overall top line.

Moreover, rise in capital expenditures is likely to have impacted fiscal second-quarter performance. Notably, the company expects cash burn of approximately $550 million per month. However, phased resumption of operations and shorter-duration cruises may have aided the company in the to-be-reported quarter. Booking volumes doubled in first-quarter 2021 compared with previous-quarter levels. Initial demand boosted the company’s confidence, which provides an indication of price strength. It believes the situation to remain dynamic over the next 12 months.

Carnival Corporation Price and EPS Surprise Carnival Corporation Price and EPS Surprise

Carnival Corporation price-eps-surprise | Carnival Corporation Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Carnival 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: Carnival has an Earnings ESP -2.98%. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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 post an earnings beat in the quarter to be reported:

Royal Caribbean Group (RCL - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.55%.

Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #1 and an Earnings ESP of +1.35%.

Century Casinos, Inc. (CNTY - Free Report) has a Zacks #2 and an Earnings ESP of +900%.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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