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Norwegian Cruise (NCLH) to Post Q4 Earnings: What's in Store?
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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24, 2022, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 2.8%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of $1.69 per share, indicating an improvement of 27.5% from a loss of $2.33 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $585.4 million. The projection suggests an increase of 6,010.3% from the year-ago quarter’s reported figure.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is likely to have benefitted from pent-up demand and improved booking trends. On Feb 8, 2022, the company provided a business update whereby it reported week-over-week sequential growth in net booking volumes. In the later part of fourth-quarter 2021, booking volumes were affected by the Omicron variant. In recent weeks, net booking volumes have continued to improve sequentially. As of Feb 8, 16 of its 28 ships or 70% of its berth capacity are operational with guests onboard. We believe that the rise in customer satisfaction coupled with pre-embarkation testing and multiple layers of additional protection (once onboard) is likely to have aided the company’s performance in the fourth quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the fourth quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $399 million and $208 million, suggesting an increase from $7.8 million and $1.8 million, respectively, reported in the prior-year quarter.
The spread of the Omicron variant at the beginning of December 2021 resulted in the cancellation of certain voyages in fourth-quarter 2021 and first-quarter 2022. The Omicron variant also led to the postponement of the restart of certain vessels. New travel restrictions and increased protocols in ports of call limiting port availability are likely to have negatively impacted the company’s operations in the fourth quarter.
The company has been 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 have been adding to woes. The company’s monthly cash burn for fourth-quarter 2021 was nearly $345 million, marginally lower than its prior estimate of $350 million. The company expects to report a net loss for fourth-quarter 2021 and the full year.
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 of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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:
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +38.68% and a Zacks Rank #2.
Shares of AGS have gained 3.6% in the past three months. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.
NeoGames S.A. has an Earnings ESP of +15.79% and a Zacks Rank #3.
Shares of NeoGames have declined 27.9% in the past year. NGMS’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 165.8%.
Vail Resorts, Inc. (MTN - Free Report) has an Earnings ESP of +5.48% and a Zacks Rank #3.
Shares of Vail Resorts have dropped 12.4% in the past year. MTN’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 19%.
Image: Bigstock
Norwegian Cruise (NCLH) to Post Q4 Earnings: What's in Store?
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24, 2022, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 2.8%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of $1.69 per share, indicating an improvement of 27.5% from a loss of $2.33 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $585.4 million. The projection suggests an increase of 6,010.3% 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 take a look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is likely to have benefitted from pent-up demand and improved booking trends. On Feb 8, 2022, the company provided a business update whereby it reported week-over-week sequential growth in net booking volumes. In the later part of fourth-quarter 2021, booking volumes were affected by the Omicron variant. In recent weeks, net booking volumes have continued to improve sequentially. As of Feb 8, 16 of its 28 ships or 70% of its berth capacity are operational with guests onboard. We believe that the rise in customer satisfaction coupled with pre-embarkation testing and multiple layers of additional protection (once onboard) is likely to have aided the company’s performance in the fourth quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the fourth quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $399 million and $208 million, suggesting an increase from $7.8 million and $1.8 million, respectively, reported in the prior-year quarter.
The spread of the Omicron variant at the beginning of December 2021 resulted in the cancellation of certain voyages in fourth-quarter 2021 and first-quarter 2022. The Omicron variant also led to the postponement of the restart of certain vessels. New travel restrictions and increased protocols in ports of call limiting port availability are likely to have negatively impacted the company’s operations in the fourth quarter.
The company has been 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 have been adding to woes. The company’s monthly cash burn for fourth-quarter 2021 was nearly $345 million, marginally lower than its prior estimate of $350 million. The company expects to report a net loss for fourth-quarter 2021 and the full year.
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 of 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 #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 sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:
PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +38.68% and a Zacks Rank #2.
Shares of AGS have gained 3.6% in the past three months. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.
NeoGames S.A. has an Earnings ESP of +15.79% and a Zacks Rank #3.
Shares of NeoGames have declined 27.9% in the past year. NGMS’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 165.8%.
Vail Resorts, Inc. (MTN - Free Report) has an Earnings ESP of +5.48% and a Zacks Rank #3.
Shares of Vail Resorts have dropped 12.4% in the past year. MTN’s earnings topped the consensus mark in all of the trailing four quarters, the average surprise being 19%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.