Factors Likely To Shape Norwegian Cruise (NCLH) Q2 Earnings
Zacks Investment Research | Aug 04, 2019 10:27PM ET
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is scheduled to report second-quarter 2019 results on Aug 8. In the last reported quarter, the company delivered a positive earnings surprise of 16.9%. The bottom line also outpaced the consensus mark by 11.2% in each of the trailing four quarters.
Q2 Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.26, indicating a 4.1% rise from the year-ago quarter reported figure. Over the past 7 days, the company’s earnings estimates have witnessed downward revisions by 2 cents. For quarterly revenues, the consensus mark is pinned at nearly $1.62 billion, suggesting 6.7% growth from the figure reported in the prior-year quarter.
Let us delve deeper into factors that are likely to influence Norwegian Cruise Line’s second-quarter results.
Factors at Play
Norwegian Cruise Line's results in the second quarter are likely to be driven by robust passenger ticket as well as onboard and other revenues. The Zacks Consensus Estimate for passenger ticket revenues suggests year-over-year growth of 7.7% to $1,160 million. The same for onboard and other revenues is pegged at $472 million, up 6% year over year.
Strong cruise demand and modest capacity growth bode well for Norwegian Cruise. Additionally, higher yield and fleet-expansion efforts are enabling the company to gain traction. Its focus on the lucrative Chinese market is an added positive. Norwegian Cruise Line’s measures to expand its fleet size are also commendable. These apart, Norwegian Cruise Line is making efforts to reward its shareholders through buybacks.
However, high costs, debt burden and Trump’s travel ban to Cuba are likely to hurt the company’s result in the quarter to be reported. Trump administration's policy change on travel to Cuba is likely to negatively impact the company’s earnings by 35-45 cents in 2019.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
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