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Factors Setting The Tone For Norwegian Cruise (NCLH) Q1 Earnings

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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report first-quarter 2022 results on May 10, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 15.4%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of $1.73 per share, indicating an improvement of 14.8% from a loss of $2.03 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $654.8 million. The projection suggests an increase of 21,023.7% from the year-ago quarter’s reported figure.

 

Let's look at how things have shaped up in the quarter.

Factors at Play

Norwegian Cruise’s first-quarter performance is likely to have benefited from the resumption of cruise services, strong demand and improved booking trends. During the previous quarter’s earnings call, the company reported sequential improvements in bookings. It stated that bookings for the second half of 2022 are in line with 2019 levels and that pricing for the full-year sailings remained higher from pre-pandemic levels. With outbreak cases subsiding and emphasizing CDC's new voluntary program and moderation of protocols, the momentum is likely to have continued in the first quarter.

Increased revenue generation from its onboard and passenger ticket is likely to have driven the first-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $396 million and $204 million compared with $0.2 million and $2.9 million, respectively, reported in the prior-year quarter.

Omicron-induced voyage cancellations, new travel restrictions and supply constraints might have dented the to-be-reported quarter's performance. The spread of the Omicron variant in early January impacted the company's cancellations and bookings for near-term sailings.

For first-quarter 2022, it expects the average cash burn rate to temporarily remain elevated at approximately $390 million per month due to the phased relaunch of additional vessels. Also, it expects to report a net loss for first-quarter 2022.

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 space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +22.68% and a Zacks Rank #2.

Shares of Planet Fitness have declined 4.3% in the past year. PLNT’s earnings surpassed the consensus mark once in the trailing four quarters, matched once and missed twice, the average surprise being 0.3%.

The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.

Shares of Disney have declined 40.1% in the past year. DIS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 67.8%.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +2.87% and a Zacks Rank #3.

Shares of Choice Hotels have gained 14.5% in the past year. CHH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 15.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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