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Norwegian Cruise (NCLH) to Post Q1 Earnings: What's in Store?

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Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is scheduled to report first-quarter 2020 results on May 14. In the last reported quarter, the company delivered a positive earnings surprise of 4.3%.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter is pegged at a loss of 52 cents, against earnings of 83 cents in the prior-year quarter. In the past 30 days, estimates for current quarter have witnessed sharp downward revisions. The same for revenues stands at $1,278 million, suggesting a decline of 8.9% from the prior-year reported figure.

Factors to Note

Decline in passenger ticket, and onboard and other revenues are anticipated to get reflected in the first-quarter results. Both the metrics might have been negatively impacted by the coronavirus pandemic. Travel warnings and cruise cancellations may have hurt the performance in the quarter to be reported.

Moreover, cash burn due to the coronavirus-induced shutdowns is likely to have impacted the company’s to-be-reported quarter’s revenues. The company’s first-quarter results are likely to reflect increase in fuel costs and net cruise costs, and Trump’s travel ban to Cuba. Additionally, the company may have been exposed to foreign- exchange related risks as it operates globally.

Norwegian Cruise Line Holdings Ltd Price and EPS Surprise

What the Zacks Model Unveils

Our proven model does not conclusively 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 chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Norwegian Cruise, which shares space with Carnival Corporation & Plc (CCL - Free Report) , has an Earnings ESP of -11.06% and a Zacks Rank #3.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to come up with an earnings beat this quarter.

BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +6.42% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Take-Two Interactive Software, Inc. (TTWO - Free Report) currently has an Earnings ESP of +13.24% and a Zacks Rank #3.

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