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Carnival (CCL) Q2 Earnings and Revenues Miss Estimates
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Shares of Carnival Corporation & plc (CCL - Free Report) have declined more than 7% since it reported second-quarter fiscal 2021 results on Jun 24. The company reported second-quarter 2021 SEC filing, wherein both earnings and revenues missed the Zacks Consensus Estimate. The top line lagged the consensus mark for the fifth straight quarter, while the bottom line missed the same for the third consecutive quarter. Notably, cruise cancellations due to the coronavirus pandemic affected the company’s performance.
The company reported loss per share of $1.80, wider than the Zacks Consensus Estimate of a loss of $1.68. In the year-ago quarter, the company had reported loss per share of $3.30. Revenues amounted to $50 million, which fell short of the consensus mark of $129 million. The top line also declined sharply from the prior-year quarter’s figure of $740 million.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival ended the quarter with cash and cash equivalents of $9.3 billion. The company announced that it has enough liquidity to return to full operation. It further added that it will be pursuing refinancing opportunities to decrease interest expense and extend maturities.
Moreover, average monthly cash burn in the first half of 2021 totaled $500 million, compared with the previously anticipated figure of $550 million. The improvement was primarily driven by the timing of proceeds from ship sales and working capital changes.
Bookings Update
During the second quarter, booking volumes for all future cruises increased 45% compared with the prior quarter. The company stated that cumulative advanced bookings for full year 2022 are ahead of a very robust 2019 as of May 31, 2021. These bookings were achieved by negligeable advertising and marketing.
Meanwhile, total customer deposits as of May 31, 2021 amounted to $2.5 billion compared with $2.2 billion as of Feb 28, 2021. During the quarter, customer deposits on new bookings exceeded the impact of refunds.
2021 Outlook
The company refrained from providing earnings guidance for fiscal 2021 due to the pandemic. However, it expects phased resumption of cruise operations to have a material impact on all aspects of its business, including the company's liquidity, financial position and results of operations. Going forward, the company anticipates to report a net loss on both U.S. GAAP and adjusted basis for the third quarter and full year ending Nov 30, 2021.
A better-ranked stock in the same space is Camping World Holdings, Inc. (CWH - Free Report) , which sports a Zacks Rank #1.
Camping World Holdings’ 2021 earnings are expected to surge 51.4%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Carnival (CCL) Q2 Earnings and Revenues Miss Estimates
Shares of Carnival Corporation & plc (CCL - Free Report) have declined more than 7% since it reported second-quarter fiscal 2021 results on Jun 24. The company reported second-quarter 2021 SEC filing, wherein both earnings and revenues missed the Zacks Consensus Estimate. The top line lagged the consensus mark for the fifth straight quarter, while the bottom line missed the same for the third consecutive quarter. Notably, cruise cancellations due to the coronavirus pandemic affected the company’s performance.
The company reported loss per share of $1.80, wider than the Zacks Consensus Estimate of a loss of $1.68. In the year-ago quarter, the company had reported loss per share of $3.30. Revenues amounted to $50 million, which fell short of the consensus mark of $129 million. The top line also declined sharply from the prior-year quarter’s figure of $740 million.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote
Liquidity and Cash Burn
Carnival ended the quarter with cash and cash equivalents of $9.3 billion. The company announced that it has enough liquidity to return to full operation. It further added that it will be pursuing refinancing opportunities to decrease interest expense and extend maturities.
Moreover, average monthly cash burn in the first half of 2021 totaled $500 million, compared with the previously anticipated figure of $550 million. The improvement was primarily driven by the timing of proceeds from ship sales and working capital changes.
Bookings Update
During the second quarter, booking volumes for all future cruises increased 45% compared with the prior quarter. The company stated that cumulative advanced bookings for full year 2022 are ahead of a very robust 2019 as of May 31, 2021. These bookings were achieved by negligeable advertising and marketing.
Meanwhile, total customer deposits as of May 31, 2021 amounted to $2.5 billion compared with $2.2 billion as of Feb 28, 2021. During the quarter, customer deposits on new bookings exceeded the impact of refunds.
2021 Outlook
The company refrained from providing earnings guidance for fiscal 2021 due to the pandemic. However, it expects phased resumption of cruise operations to have a material impact on all aspects of its business, including the company's liquidity, financial position and results of operations. Going forward, the company anticipates to report a net loss on both U.S. GAAP and adjusted basis for the third quarter and full year ending Nov 30, 2021.
Zacks Rank & a Key Pick
Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and Royal Caribbean Group (RCL - Free Report) in the Zacks Leisure and Recreation Services industry — carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the same space is Camping World Holdings, Inc. (CWH - Free Report) , which sports a Zacks Rank #1.
Camping World Holdings’ 2021 earnings are expected to surge 51.4%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>