Yahoo Finance Carnival (CCL) Q1 Earnings & Revenues Top Estimates, Rise Y/Y
Carnival Corporation & plc CCL reported first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line improved on a year-over-year basis.
Carnival Corporation's chief executive officer Josh Weinstein, stated, "In the first quarter, we outperformed our guidance on all measures. We achieved record first quarter net per diems, exceeding the high end of our guidance, driven by improving ticket prices and sustained growth in onboard revenue, while delivering an additional seven points of occupancy on higher capacity compared to the prior quarter."
Earnings & Revenues
In the quarter under review, the company reported adjusted loss per share of 55 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents. In the year-ago quarter, the company had reported a loss per share of $1.66.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote
Revenues in the quarter totaled $4,432 million, beating the consensus mark of $4,351 million. The top line improved sharply from the prior-year quarter’s figure of $1,623 million. Passenger ticket and onboard and other revenues were $2,870 million and $1,563 million, respectively.
Q1 Financials
During the fiscal first quarter, the company reported a GAAP net loss of $693 million compared with a loss of $1,891 million in the prior-year quarter. Adjusted net loss in the quarter amounted to $690 million compared with $1,884 million reported in the year-ago quarter.
In first-quarter fiscal 2023, occupancy came in at 91% compared with 54% reported in the prior quarter.
Balance Sheet
Cash and cash equivalents as of Feb 28, 2023, were $5,455 million compared with $4,029 million reported in the previous quarter. Carnival ended the quarter with liquidity of $8,105 million. Total debt (current and long-term) as of Feb 28, 2023, was $35.1 billion compared with $34.5 billion as of Nov 30, 2022.
Adjusted EBITDA, as of Feb 28, 2023, came in at 382 million against ($962) million reported in the prior-year quarter.
Bookings Update
During the fiscal first quarter, the company reported solid bookings for the North America and Australia and Europe segments. The upside was backed by strong demand, bundled package offerings and pre-cruise sales. Also, it stated the benefits from increased advertising activities. The company stated that its 2023 cumulative advanced booked position is at increased prices compared with 2019 levels.
Meanwhile, total customer deposits as of Feb 28 were $5.7 billion compared with $5.1 billion reported in the previous quarter. The amount was higher than $4.9 billion reported in 2019.
2023 Outlook
In the second quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $600-$700 million. Occupancy during the quarter is estimated to be more than 98%.
For fiscal 2023, the company anticipates adjusted EBITDA in the range of $3.9-$4.1 billion. It expects sequential improvements in adjusted EBITDA (per ALBD) compared with 2019 levels. In fiscal 2023, the company anticipates occupancy to reach historical levels of 100% (or higher).
Zacks Rank and Stocks to Consider
Currently, Carnival carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. LVS, Hilton Grand Vacations Inc. HGV and Crocs, Inc. CROX.
Las Vegas Sands sports a Zacks Rank #1 (Strong Buy). LVS has a long-term earnings growth rate of 2.5%. The stock has increased 39.8% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 108.4% and 217.5%, respectively, from the year-ago period’s estimated levels.
Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 20.2% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 7.1% and 10.8%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 49.4% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.5% and 2.5%, respectively, from the year-ago period’s levels.
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Carnival Corporation (CCL) : Free Stock Analysis Report
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