Norwegian Cruise to Post Q3 Earnings: What's in the Cards?

Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report third-quarter 2025 results on Nov. 4, before the opening bell.

NCLH’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed on two occasions, the average surprise being 29.1%.

Trend in Estimate Revision of NCLH

The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $1.16, indicating a rise of 17.2% from 99 cents reported in the year-ago quarter.

Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise

Norwegian Cruise Line Holdings Ltd. price-eps-surprise | Norwegian Cruise Line Holdings Ltd. Quote

For revenues, the consensus mark is pegged at approximately $3 billion. The metric suggests a rise of 7.5% from the year-ago quarter’s figure.

Let’s take a look at how things have shaped up in the quarter.

Factors Likely to Shape Norwegian Cruise’s Quarterly Results

Norwegian Cruise's third-quarter performance is expected to have benefited from demand strength, resilient pricing and ongoing progress across strategic brand and deployment initiatives. Solid bookings and operational momentum within the company’s “fun-in-sun” itineraries, particularly in the Caribbean and Bermuda, likely aided the top line in the third quarter.

The continued transformation of its private island, Great Stirrup Cay — featuring new pool areas, cabanas and the upcoming Great Tides Waterpark — likely enhanced onboard revenue opportunities in the third quarter. Our model predicts third-quarter onboard and other revenues to rise 13.9% year over year to $981.7 million.

Strong performance in the luxury segment, driven by Oceania’s Allura debut and robust early bookings for Regent’s Seven Seas Prestige, likely contributed to higher yields. The company anticipates net yields to rise approximately 1.5% (on a constant-currency basis) from the prior year.

NCLH’s disciplined cost management and transformation initiatives likely continued to support profitability. Efforts focused on procurement optimization, supply chain efficiencies and economies of scale were expected to keep adjusted net cruise costs (excluding fuel) essentially flat during the quarter on a constant-currency basis.

While some softness in long-haul European itineraries may have tempered occupancy, solid pricing growth of around 4% and healthy onboard spending trends likely offset this impact. Management’s guidance for adjusted EBITDA to exceed $1 billion and adjusted EPS to rise approximately 11% year over year to $1.14 in the third quarter highlights the underlying strength of the company’s fundamentals.

What Our Model Says About NCLH Stock

Our proven model predicts 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, which is exactly the case here.

NCLH’s Earnings ESP: Norwegian Cruise has an Earnings ESP of +0.74%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NCLH’s Zacks Rank: The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat on Earnings

Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat.

Amer Sports, Inc. AS has an Earnings ESP of +4.84% and a Zacks Rank of 1 at present.

Amer Sports is expected to register a 78.6% increase in earnings for the to-be-reported quarter. Amer Sports reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 83.9%.
 
Wynn Resorts, Limited WYNN has an Earnings ESP of +9.24% and a Zacks Rank #1 at present.

Wynn Resorts’ earnings for the to-be-reported quarter are expected to increase 20%. Wynn Resorts reported better-than-expected earnings in one of the trailing four quarters and missed on three occasions, the average surprise being 11.5%.
 
AMC Entertainment Holdings, Inc. AMC currently has an Earnings ESP of +2.49% and a Zacks Rank of 3.

AMC Entertainment’s earnings for the to-be-reported quarter are expected to decline 325% year over year. AMC reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 33.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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