Norwegian Cruise (NCLH) To Post Q4 Earnings: What's In Store?
Zacks Investment Research | Feb 18, 2020 09:26PM ET
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is scheduled to report fourth-quarter 2019 results on Feb 20. In the last reported quarter, the company delivered a positive earnings surprise of 3.8%.
Q4 Expectations
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 70 cents, indicating a decline of 17.7% from the year-ago quarter. The same for revenues stands at $1,431 million, suggesting growth of 3.9% from the prior-year reported figure.
Factors at Play
Robust passenger ticket and onboard and other revenues are likely to have driven Norwegian Cruise fourth-quarter performance. Moreover, strong demand and modest capacity growth are likely to get reflected in the to-be-reported quarter’s results. Higher yield and fleet-expansion efforts have been enabling the company to gain traction.
The Zacks Consensus Estimate for passenger ticket revenues stands at $983 million, suggesting growth of 2.6% from the year-ago quarter. The same for onboard and other revenues is pegged at $451 million, indicating an improvement of 6.6% from the prior-year reported figure.
However, the fourth-quarter bottom line is likely to reflect increase in fuel costs and net cruise costs and Trump’s travel ban to Cuba. The company expects net cruise costs (excluding Fuel per Capacity Day) to be 2.25% in constant currency. Trump administration's policy change on travel to Cuba is likely to have affected the company’s earnings by 35-45 cents in 2019. Moreover, the company may have been exposed to foreign- exchange related risks as it operates globally.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
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