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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 2022 results on Feb 28, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 9.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 89 cents per share, indicating an improvement of 54.4% from a loss of $1.95 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,500 million. The projection suggests an increase of 207.8% from the year-ago quarter’s reported figure.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is likely to have benefited from improved booking trends, relaxation in COVID-related protocols and fleet expansion efforts. This and the increased focus on the booking window are likely to have contributed to the company’s performance in the fourth quarter. During the previous quarter, the company emphasized on the removal of COVID testing requirements from countries like Canada, Bermuda, Greece and South America. Also, it reported sequential improvements in booking activities incorporating higher pricing and the dilutive impact of future cruise credits. As of Sep 30, 2022, the company’s advance ticket sales (including the long-term portion) were $2.5 billion compared with $2.2 billion reported in the previous quarter. Given the pent-up demand and the emphasis on reducing friction and travel-related hassles for its guests, the momentum is likely to have continued in the fourth quarter. For the fourth quarter of 2022, the company expects occupancy to be in the mid-to-high 80% range.
Increased revenue generation from its onboard and passenger tickets 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 $998 million and $491 million, compared with $305 million and $183 million, respectively, reported in the prior-year quarter.
The absence of premium-priced Baltic itineraries due to the Russia-Ukraine conflict is likely to have affected the company’s performance in the fourth quarter. This and inflationary pressures and global supply chain constraints are likely to have dented the company’s margins in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not predict 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 -3.37%. 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 #4 (Sell).
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.
Shares of Stride have increased 29.1% in the past year. LRN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being negative 40.7%.
DISH Network Corporation has an Earnings ESP of +7.37% and a Zacks Rank #3.
Shares of DISH Network have declined 58.4% in the past year. DISH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 63.4%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3.
Shares of Monarch Casino have declined 1.7% in the past year. MCRI’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 3.7%.
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 2022 results on Feb 28, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 9.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 89 cents per share, indicating an improvement of 54.4% from a loss of $1.95 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,500 million. The projection suggests an increase of 207.8% 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 look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s fourth-quarter performance is likely to have benefited from improved booking trends, relaxation in COVID-related protocols and fleet expansion efforts. This and the increased focus on the booking window are likely to have contributed to the company’s performance in the fourth quarter. During the previous quarter, the company emphasized on the removal of COVID testing requirements from countries like Canada, Bermuda, Greece and South America. Also, it reported sequential improvements in booking activities incorporating higher pricing and the dilutive impact of future cruise credits. As of Sep 30, 2022, the company’s advance ticket sales (including the long-term portion) were $2.5 billion compared with $2.2 billion reported in the previous quarter. Given the pent-up demand and the emphasis on reducing friction and travel-related hassles for its guests, the momentum is likely to have continued in the fourth quarter. For the fourth quarter of 2022, the company expects occupancy to be in the mid-to-high 80% range.
Increased revenue generation from its onboard and passenger tickets 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 $998 million and $491 million, compared with $305 million and $183 million, respectively, reported in the prior-year quarter.
The absence of premium-priced Baltic itineraries due to the Russia-Ukraine conflict is likely to have affected the company’s performance in the fourth quarter. This and inflationary pressures and global supply chain constraints are likely to have dented the company’s margins in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not predict 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 -3.37%. 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 #4 (Sell).
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.
Stride, Inc. (LRN - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Stride have increased 29.1% in the past year. LRN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being negative 40.7%.
DISH Network Corporation has an Earnings ESP of +7.37% and a Zacks Rank #3.
Shares of DISH Network have declined 58.4% in the past year. DISH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 63.4%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +4.12% and a Zacks Rank #3.
Shares of Monarch Casino have declined 1.7% in the past year. MCRI’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 3.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.