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

Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report first-quarter 2023 results on May 1, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 16.9%.

The Trend in Estimate Revision

The Zacks Consensus Estimate is pegged at a loss of 43 cents per share, indicating an improvement of 76.4% from a loss of $1.82 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $1.76 billion. The projection suggests an improvement from $521.9 million reported in the year-ago quarter.

Let's find out how things have shaped up in the quarter under review.

Factors at Play

Norwegian Cruise’s first-quarter results are likely to reflect benefits of improving booking trends, fleet expansion efforts and robust passenger ticket revenues. Earlier, the company had said that the cumulative booked position for 2023 is higher than the 2019 reported levels.

Also, the removal of COVID testing requirements from countries like Canada, Bermuda, Greece and South America have been aiding the company. For first-quarter 2023, our model predicts passenger ticket, and onboard and other revenues to increase 353.6% and 10.6% year over year to $1,553.3 million and $198.6 million, respectively.

However, high costs are likely to have hurt the bottom line in the quarter to be reported. We expect total cruise operating expenses to increase 72.6% year over year to $1,269.3 million. In fourth-quarter 2022, NCLH’s performance was negatively impacted by the absence of premium-priced Baltic itineraries and the trend is likely to have continued in first-quarter 2023.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

 

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

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 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: Norwegian Cruise has a Zacks Rank #3.

Stocks Poised 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.

Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Wynn Resorts have improved 50.8% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

Hyatt Hotels Corporation H has an Earnings ESP of +56.57% and a Zacks Rank #3.

Shares of Hyatt Hotels have gained 20.1% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.

Choice Hotels International, Inc. CHH has an Earnings ESP of +7.21% and a Zacks Rank #3.

Shares of Choice Hotels have declined 11.9% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hyatt Hotels Corporation (H) : Free Stock Analysis Report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report

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