Why Norwegian Cruise Line (NCLH) is Poised to Beat Earnings Estimates Again

Zacks Equity Research

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Norwegian Cruise Line (NCLH). This company, which is in the Zacks Leisure and Recreation Services industry, shows potential for another earnings beat.

This cruise operator has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.15%.

For the most recent quarter, Norwegian Cruise Line was expected to post earnings of $0.79 per share, but it reported $0.85 per share instead, representing a surprise of 7.59%. For the previous quarter, the consensus estimate was $2.21 per share, while it actually produced $2.27 per share, a surprise of 2.71%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Norwegian Cruise Line. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Norwegian Cruise Line has an Earnings ESP of +0.53% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.


Is your investment advisor fumbling your financial future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.” Click to get your free report.
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

  • China reports fall in new virus cases for 3rd straight day
    Associated Press

    China reports fall in new virus cases for 3rd straight day

    China reported Sunday a drop in new virus cases for the third straight day, as it became apparent that the country's leadership was aware of the potential gravity of the situation well before the alarm was sounded. There are 2,009 new cases in mainland China, bringing its total number of confirmed cases to 68,500, according to the country's National Health Commission. The death toll in mainland China from COVID-19, a disease stemming from a new form of coronavirus, now stands at 1,665.

  • Wisconsin mother, two daughters found dead after Amber Alert issued; boyfriend arrested
    USA TODAY

    Wisconsin mother, two daughters found dead after Amber Alert issued; boyfriend arrested

    A mother and two daughters who were the subjects of an Amber Alert were found dead Sunday afternoon, the victims of an apparent homicide, police said. Amarah J. Banks, 26; Zaniya R. Ivery, 5; and Camaria Banks, 4, were found in a garage, Milwaukee Police Chief Alfonso Morales said at a news conference. One count of felony aggravated battery was filed against him Saturday in Milwaukee County, according to online court records.

  • Judge sets Tuesday phone hearing in Roger Stone case
    Politico

    Judge sets Tuesday phone hearing in Roger Stone case

    The judge handling the criminal case that set off a white-hot, national political controversy last week — the prosecution of President Donald Trump's longtime adviser Roger Stone — has ordered both sides to take part in a telephone hearing Tuesday to discuss the status of the case. U.S. District Court Judge Amy Berman Jackson issued the unusual Sunday order after the entire four-person prosecution team withdrew from the case following Attorney General Bill Barr's intervention to rescind their recommendation of a seven-to-nine year sentence for Stone. The move set off a furor inside and outside the Justice Department, with Barr facing accusations he was politicizing the department by seeking to favor Trump's friends.

  • Inside the Family's Manhattan Apartment
    Architectural Digest

    Inside the Family's Manhattan Apartment

    undefined Originally Appeared on Architectural Digest

  • Ocasio-Cortez faces 13 challengers – but can anyone unseat her?
    The Guardian

    Ocasio-Cortez faces 13 challengers – but can anyone unseat her?

    We don't see a lot of young people accomplish a lot because they're afraid – and she's not afraid. We knew who she was when we sent her, that she'd make a noise, and making a noise was why we sent her Abdul Abbas That's not how all see it. The first-term congresswoman is facing eight Republican and five Democratic candidates aiming to unseat her.

  • Reuters

    French soldier has died while on duty in Burkina Faso

    A French soldier has died while on operations in Burkina Faso, the French Armed Forces Ministry said in a statement on Monday. The ministry said the causes of the death of Sergeant Morgan Henry were unknown for now and an investigation was underway into the circumstances behind his death. Former colonial power France intervened in the Sahel region, south of the Sahara, back in 2013 to drive back militants who had seized northern Mali the previous year.

  • 6-year-old girl was committed to mental health facility without parent consent
    NBC News

    6-year-old girl was committed to mental health facility without parent consent

    A 6-year-old Florida girl was committed for two days to a mental health facility without her mother's consent after allegedly throwing a temper tantrum at school, an attorney for the family said. The child was allegedly given anti-psychotic medications at the center, also without the permission of her mother, Martina Falk. Falk's lawyer, Reganel Reeves, said a mental health counselor was called to the school because Nadia was reportedly having a tantrum and throwing chairs.

  • Push for universal basic income will outlive Andrew Yang's 2020 presidential campaign
    USA TODAY Opinion

    Push for universal basic income will outlive Andrew Yang's 2020 presidential campaign

    Andrew Yang focused his surprisingly successful long-shot presidential campaign on a seemingly radical policy idea: universal basic income, or giving people monthly cash payments with no strings attached. He has dropped out of the 2020 race, but the push for UBI will live on. While the roots of this concept run through our country's history, with supporters who include Thomas Paine and Martin Luther King Jr., Yang is rightly credited with moving the idea of unconditional cash out of think tanks and academia and into living rooms across the country.

  • A cruise-ship passenger tested positive for the coronavirus after hundreds of other passengers disembarked and dispersed all over the world
    Business Insider

    A cruise-ship passenger tested positive for the coronavirus after hundreds of other passengers disembarked and dispersed all over the world

    Associated Press/Heng Sinith Health officials on Saturday said they'd found a coronavirus case among the hundreds of passengers who disembarked a cruise ship in Cambodia, The New York Times reported. The Westerdam cruise ship spent weeks stranded at sea after five ports rejected it over coronavirus fears. Now, more than 1,000 passengers from the ship have proceeded to destinations around the world, and health officials are struggling to determine how to handle the situation.

  • Jimmy Hoffa associate who was suspect in disappearance dead
    Yahoo News Video

    Jimmy Hoffa associate who was suspect in disappearance dead

    Charles “Chuckie” O'Brien, an associate of Teamsters boss Jimmy Hoffa who became a leading suspect in the labor leader's disappearance and later was portrayed in the Martin Scorsese film “The Irishman, has died.

  • 2 men killed in large avalanche in Colorado
    CBS News

    2 men killed in large avalanche in Colorado

    Authorities in Eagle County, Colorado, confirmed the deaths of two men Sunday, CBS Denver reported. The pair was killed in an avalanche Saturday on Muddy Pass near Vail. The Eagle County Coroner's Office has identified the deceased as Dillon Block, 28, and Cesar Almanza-Hernandez, 30.

  • Egypt’s top prosecutor denies activist was tortured
    Associated Press

    Egypt’s top prosecutor denies activist was tortured

    Egypt's chief prosecutor on Sunday denied allegations that the police tortured a human rights activist and vocal critic of President Abdel Fattah el-Sissi. Police detained Patrick George Zaki, 28, an Egyptian student at the University of Bologna in Italy, after he arrived in Cairo earlier this month on what was supposed to be a brief visit home. Zaki told his lawyers he'd been tortured with electric shocks, beaten and blindfolded during interrogations about his activism, according to the Egyptian Initiative for Personal Rights.

  • ‘Photographer’ Drugged New Mom, Planned to Steal Baby, Cops Say
    The Daily Beast

    ‘Photographer’ Drugged New Mom, Planned to Steal Baby, Cops Say

    It began with an offer on Facebook group for the mothers of newborns: An aspiring photographer wanted to take pictures of babies for free to build her portfolio. Investigators said they have collected evidence that the 38-year-old “photographer,” Juliette Parker, had a plan to steal a baby and raise it as her own. On Friday afternoon, detectives from the Pierce County Sheriff's Department arrested Parker, who has also gone by the names Juliette Noel and Juliette Gains, and her 16-year-old daughter.

  • US embassy in Baghdad attacked with rockets
    The Independent

    US embassy in Baghdad attacked with rockets

    Rockets have dropped near the US embassy in Iraq and a military base hosting American troops, according to officials. Two rockets dropped inside the sprawling embassy compound in Baghdad, three Iraqi security officials have claimed. Colonel Myles Caggins, a spokesman for the US military operation in Iraq, said the military base had been hit by rockets just before 3.30am local time on Sunday.

  • Hong Kong protesters rally against planned virus quarantine centers
    Reuters

    Hong Kong protesters rally against planned virus quarantine centers

    Hundreds of demonstrators rallied for a second day in Hong Kong on Sunday to protest against plans to turn some buildings into coronavirus quarantine centers, reviving anti-government protests in the Chinese-ruled city. The virus has opened a new front for protesters after months of demonstrations over the perceived erosion of freedoms had largely fizzled out over the past month, as people stayed at home amid fears of a community outbreak of the virus. About 100 people braved rain in the New Territories district of Fo Tan, where authorities plan to use a newly built residential development that was subsidized by the government as a quarantine center.

  • Man who left puppy to drown in cage sentenced to 1 year for animal cruelty
    NBC News

    Man who left puppy to drown in cage sentenced to 1 year for animal cruelty

    A New Jersey man who tried to leave an 8-month-old puppy to drown in a cage was sentenced to a year in state prison Friday. Aaron Davis, 36, was convicted of fourth-degree animal cruelty in December after leaving the pit bull in a cage along the rising tide of Sandy Hook Bay in July 2018, according to the Monmouth County Prosecutor. Luckily, a passerby noticed the crate in the early morning hours and climbed down a rocky barrier to save the puppy, who was later named River.

  • Remember When Iran Took Out Saddam Hussein's Navy In One Day—With American-Made Jets?
    The National Interest

    Remember When Iran Took Out Saddam Hussein's Navy In One Day—With American-Made Jets?

    Key Point: In Operation Morvarid (“Pearl”) not only did they hope to take the Iraqi radars out of the picture but also Baghdad's vital oil infrastructure. On September 22, 1980 Saddam Hussein launched Iraq into a full-scale invasion of Iran—hoping to capitalize on Iran's instability due to the Iranian Revolution. Khorramshahr and Abadan, two major Iranian port cities just across and downstream the Shatt-al-Arab river from the major Iraqi oil-exporting port of Basra, were priority targets.

  • India women facing sedition charges over school play get bail
    AFP

    India women facing sedition charges over school play get bail

    Two women held for two weeks by Indian police on sedition charges over a school play which allegedly criticised a contentious citizenship law have been granted bail, officials said Sunday. Teacher Fareeda Begum, 50, and parent Nazbunnisa, 36, were arrested on January 30 for helping the children stage the play at Shaheen Public School in Karnataka state. The play depicted a worried family talking about how they feared the government would ask millions of Muslims to prove their nationality or be expelled from India.

  • Police allegedly held a black student at gunpoint. Now the governor wants an investigation
    USA TODAY

    Police allegedly held a black student at gunpoint. Now the governor wants an investigation

    The governor of Illinois on Thursday called for an investigation into allegations that police held a black college student at gunpoint after misidentifying him as a suspect. Gov. J.B. Pritzker's statement comes after Jaylan Butler, 20, sued the six officers involved for unlawful searches and seizure, excessive force and false arrest on a Sunday night last February. Butler, a swim team member at Eastern Illinois University, said he was walking back to the team bus near a rest stop off Interstate 80 when patrol cars pulled up to him.

  • Trump reportedly urged the CIA to hunt and kill Osama bin Laden's son instead of more pressing terrorist threats
    Business Insider

    Trump reportedly urged the CIA to hunt and kill Osama bin Laden's son instead of more pressing terrorist threats

    President Donald Trump wanted his intelligence officials to focus on killing Osama bin Laden's son over other terrorist targets because he was the only one Trump was familiar with, NBC News reported Sunday. Two military and intelligence officials said Trump did not recognize many other names on the CIA's list of potential targets. Trump has also approved successful strikes on other top terrorist targets, including the Islamic State leader Abu Bakr al-Baghdadi and Yemen's Al Qaeda chief Qasim al-Rimi.

  • Police: 1 dead, 4 wounded in Connecticut club shooting
    Associated Press

    Police: 1 dead, 4 wounded in Connecticut club shooting

    Gunfire erupted at a Connecticut nightclub early Sunday morning, killing a man and wounding four other people, police said. A 28-year-old man died in the shooting at the Majestic Lounge in Hartford's South End, police Lt. Paul Cicero said. Police officers had been stationed outside the club because of previous problems there and reported the shooting at about 1:30 a.m. Officers rushed in, but were confronted with a large number of people running toward the exits, Cicero said.

  • NIH official confirms 40 Americans on cruise ship have coronavirus
    Politico

    NIH official confirms 40 Americans on cruise ship have coronavirus

    A top National Institutes of Health official said Sunday that at least 40 Americans on a quarantined cruise ship in Japan have been infected with the deadly coronavirus. Dr. Anthony Fauci, the director of the NIH's National Institute of Allergy and Infectious Diseases, said in an interview with host Margaret Brennan on CBS' “Face the Nation” that infected Americans aboard the Diamond Princess cruise ship would be treated at hospitals in Japan. The CDC confirmed on Saturday that 400 Americans were set to be evacuated from the cruise ship and flown back to the United States where, Fauci said, they would be subjected to a 14-day quarantine on military bases in California and Texas.

  • Topless dairy industry protesters crash Sanders rally
    Yahoo News Video

    Topless dairy industry protesters crash Sanders rally

    Topless protesters crashed the stage at a rally for Sen. Bernie Sanders on Sunday afternoon to protest his involvement with the dairy industry.

  • Fast-food companies in China step up ‘contactless’ pickup, delivery as coronavirus rages
    Reuters

    Fast-food companies in China step up ‘contactless’ pickup, delivery as coronavirus rages

    With the coronavirus outbreak in China continuing to spread, McDonald's Corp, Starbucks Corp and other fast-food companies are ramping up "contactless" pickup and delivery services to keep their workers and customers safe, the companies said. McDonald's has implemented contactless pickup and delivery of Big Macs, fries and other menu items across the China as the outbreak has unfolded. Customers order remotely – on mobile phones or by computers in store – and employees seal the meals in bags and put them in a special spot for pickup without human contact, McDonald's says on its website.

  • Costa Rican police find six tonnes of cocaine in biggest ever haul
    The Independent

    Costa Rican police find six tonnes of cocaine in biggest ever haul

    Police in Costa Rica have found almost 6 tonnes of cocaine in a shipping container, leading to the country's biggest ever drug seizure. The drugs, which weighed 5,800kg, were discovered on Friday evening in Limón in a container of flowers due to be sent to Rotterdam, Holland, according to the Costan Rican national newspaper La Nación. In a press conference on Saturday afternoon, interior minister Michael Soto Rojas confirmed it was the largest ever drug seizure in Costa Rica.