Earnings Previews: Norwegian Cruise Lines, Target

After an hour of trading on Friday, the Dow Jones industrials were down 1.18%, the S&P 500 1.32% lower and the Nasdaq down 1.63%.

Blame the personal consumption expenditures (PCE) report. Prices and spending rose more than expected, raising the odds for more Federal Reserve tightening.

After U.S. markets closed Thursday, Block reported mixed results, missing the earnings per share (EPS) estimate but beating revenue expectations. The company said it would be slowing the pace of expense growth significantly this year. Shares traded up 0.6% Friday morning.

Carvana missed consensus EPS and revenue estimates. The company had no upbeat comments on the current quarter either. Shares traded down 16.5%.

Warner Bros. Discovery also missed estimates on the top and bottom lines. The company reduced its debt by $7 billion — only $43 billion left to go. Maybe more big-budget movies based on Tolkien’s hobbits and wizards will work some magic for the company. Investors are skeptical. Shares traded up by 1.6%.

No notable reports were released before markets opened on Friday. Fisker and Li Auto are on deck to report earnings first thing Monday, then later in the day, look for results from Occidental Petroleum, Range Resources and Zoom Video.

Here is a look at three companies set to report results before Tuesday’s opening bell.

Norwegian Cruise Lines

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) has staged something of a comeback since the beginning of the year. Shares have added more than 33% in 2023, and the stock is down only 15.5% over the past 12 months. Royal Caribbean is down 13% over the past year and Carnival is down 47% in the period. The worry for the cruise ship operators is that fears of inflation will outstrip consumers wanting to get away from it all after the pandemic. Rising interest rates add more pressure on a group that can little afford it.

Of 19 analysts covering the stock, 10 have a rating of Buy or Strong Buy and seven have Hold ratings. At a recent price of around $16.00 a share, the upside potential based on a median price target of $18.50 is 15.6%. At the high target of $32.00, the implied gain is about 100%.

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