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Norwegian Cruise (NCLH) to Post Q2 Earnings: What to Expect?

Zacks Equity Research
·4-min read

Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report second-quarter 2022 results on Aug 9, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 5.2%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 82 cents per share, indicating an improvement of 57.5% from a loss of $1.93 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $1.26 billion. The projection suggests an improvement from the $4.4 million reported in the year-ago quarter.

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

Factors at Play

Norwegian Cruise’s second-quarter performance is likely to have benefited from the resumption of cruise services, strong demand and improved booking trends. On May 7, 2022, the company completed its phased fleet relaunch, and its entire 28-ship fleet is now operating. Norwegian Cruise was operating at nearly 85% of its capacity by the end of the first quarter of 2022. The company previously said that it expects its occupancy to reach the pre-pandemic level across its fleet no later than the beginning of the third quarter of 2022. Most of the countries in the EU are now allowing travelers from the United States.

Increased revenue generation from its onboard and passenger ticket is likely to have driven the second-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $833 million and $389 million compared with $1.58 million and $2.8 million, respectively, reported in the prior-year quarter.

However, higher payroll, fuel, and direct variable costs of fully operating ships are likely to have negatively impacted the bottom line. Inflationary pressures relating to food, perishables, and other supplies also added to the woes.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

Norwegian Cruise Line Holdings Ltd. price-eps-surprise | Norwegian Cruise Line Holdings Ltd. Quote

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 Posed to Beat Earnings

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:

Callaway Golf Company ELY has an Earnings ESP of +2.69% and a Zacks Rank of 2.

Shares of Callaway Golf have declined 30.1% in the past year. ELY’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 955.5%.

DraftKings Inc. DKNG has an Earnings ESP of +1.29% and a Zacks Rank of 2.

Shares of DraftKings have declined 68.4% in the past year. DKNG’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average miss being 9.3%.

Dolby Laboratories, Inc. DLB has an Earnings ESP of +5.00% and a Zacks Rank #3.

Shares of Dolby Laboratories have declined 20.4% in the past year. DLB’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 14.7%.

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


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Dolby Laboratories (DLB) : Free Stock Analysis Report
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
Callaway Golf Company (ELY) : Free Stock Analysis Report
 
DraftKings Inc. (DKNG) : Free Stock Analysis Report
 
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