Norwegian Cruise (NCLH) to Post Q3 Earnings: What's in Store?
Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report third-quarter 2023 results on Nov 1 before the opening bell. In the last reported quarter, the company reported an earnings surprise of 11.1%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter adjusted earnings is pegged at 69 cents per share, indicating a surge of 207.8% year over year. In the past 30 days, earnings estimate for the current quarter has been revised downward by 1.4%. For revenues, the consensus mark is pegged at $2.54 billion, suggesting a 57.4% gain year over year.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Norwegian Cruise’s third-quarter revenues are anticipated to record a year-over-year rise, propelled by robust booking trends, improved occupancy rates and ongoing efforts to expand its fleet. Its performance is expected to benefit from increased onboard revenues driven by improved bundled offerings, strong advance ticket sales and higher pricing levels. For the third quarter of 2023, Norwegian Cruise anticipates occupancy to be approximately 106%.
For the quarter under review, our model predicts passenger ticket, and onboard and other revenues to increase 59.8% ($1,767.3 million) and 48.4% ($756.4 million), respectively, on a year-over-year basis.
Emphasis on margin enhancement initiatives, such as itinerary optimization, supply-chain initiatives and rationalization of product delivery, are likely to have aided NCLH’s performance in the third quarter. Management anticipates adjusted EBITDA to be approximately $730 million. It expects adjusted EPS to be 70 cents.
Elevated costs concerning food, perishables and logistics are likely to have hurt margins in the quarter under discussion. Per our model, total cruise operating costs in the third quarter are expected to rise 19.7% year over year to $1,482.8 million.
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 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 -0.73%. 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.
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.
MGM Resorts International MGM has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have improved 7.2% in the past year. MGM’s earnings surpassed the consensus mark in three of the trailing four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. MAR has an Earnings ESP of +4.23% and a Zacks Rank #3.
Shares of Marriott have jumped 21.4% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
Hyatt Hotels Corporation H has an Earnings ESP of +7.50% and a Zacks Rank #3.
Shares of Hyatt Hotels have increased 20.1% in the past year. H’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 197.3%.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Hyatt Hotels Corporation (H) : Free Stock Analysis Report
MGM Resorts International (MGM) : Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
