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Resumption of Services to Aid Norwegian Cruise (NCLH) Q3 Earnings

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  • NCLH

Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report third-quarter 2021 results on Nov 3, before the opening bell. In the last reported quarter, the company delivered a positive earnings surprise of 3.5%.

Q3 Estimates

The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of $2.11 per share, compared with the prior-year quarter’s loss of $2.35. The consensus mark for revenues stands at $190.1 million, compared with $6.52 million in the year-ago reported figure.

Factors to Note

Norwegian Cruise’s third-quarter results are likely to reflect benefits from resumption of cruise services. The company has been gaining from strong demand and booking volume growth. It has been registering solid demand for future cruise vacations. However, the company expects to report a loss in the third quarter of 2021 and witness net loss until it is able to resume regular voyages.

The Zacks Consensus Estimate for passenger ticket revenues, and onboard and other revenues is currently pegged at $138 million and $56 million, compared with $4.7 million and $1.9 million, respectively, reported in the prior-year quarter.

The company has been bearing the brunt of high expenses for quite some time now. Costs associated with the suspension of cruise voyages, and continued payment of protected commissions and crew salaries have been adding to woes. The company's monthly average cash burn for second-quarter 2021 was approximately $200 million compared with $190 million in the prior quarter. For third-quarter 2021, it expects the average cash burn rate to temporarily remain elevated at approximately $285 million per month due to the phased relaunch of additional vessels.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
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 doesn’t 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.

Earnings ESP: Norwegian Cruise has an Earnings ESP 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 #4 (Sell).

Stocks With Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat.

Golden Entertainment, Inc. GDEN has a Zacks Rank #1 and an Earnings ESP of +37.45%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accel Entertainment, Inc. ACEL has a Zacks Rank #2 and an Earnings ESP of +20.00%.

Choice Hotels International, Inc. CHH has a Zacks Rank #2 and an Earnings ESP of +4.04%.


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

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

Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report

Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report

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