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Carnival (CCL) Earnings and Revenues Miss Estimates in Q3

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Shares of Carnival Corporation & plc (CCL - Free Report) have declined 1.7% since it reported third-quarter fiscal 2021 results on Sep 24. The company reported third-quarter 2021 SEC filing, wherein both earnings and revenues missed the Zacks Consensus Estimate. The top line lagged the consensus mark for the sixth straight quarter, while the bottom line missed the same for the fourth consecutive quarter. However, both the metrics improved year over year.

The company reported a loss per share of $1.75, wider than the Zacks Consensus Estimate of a loss of $1.53. In the year-ago quarter, the company had reported a loss per share of $2.19. Revenues totaled $546 million, which missed the consensus mark of $737 million. Nevertheless, the top line improved sharply from the prior-year quarter’s figure of $31 million. Passenger ticket and onboard and other revenues were $303 million and $243 million, respectively.

During the fiscal third quarter, the company reported an adjusted net loss of $2 billion at par with the previous quarter’s levels. GAAP net loss for the quarter amounted to $2.8 billion.

Carnival Corporation Price, Consensus and EPS Surprise 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 equivalent of $7.2 billion. The company announced that it has enough liquidity to return to full operation. It further added that it will continue to pursue refinancing opportunities to lower interest expenses and extend maturities.

Average monthly cash burn in the third quarter was $510 million, in line with the monthly average cash burn rate of $500 million in the first half of 2021. However, cash burn for the third quarter was better than the prior guidance.

The company informed that gradual resumption of business will continue to have a material impact on its liquidity, financial position and results of operations.

In third-quarter 2021, occupancy was 54.2%. In June and August, occupancy was 39% and 59%, respectively.

Bookings Update

During the third quarter, booking volumes for all future cruises were higher than booking volumes in the first quarter of 2021. However, booking volumes in August were not as robust as it were in second-quarter 2021 on concerns regarding the Delta variant. The company stated that cumulative advanced bookings for the second half of 2022 are ahead of a very robust 2019 as of Aug 31, 2021.

Meanwhile, total customer deposits as of Aug 31, 2021 were $3.1 billion compared with $2.5 billion as of May 31, 2021.

Recent Developments

The company has resumed operations with 35% of its capacity, which includes nine brands, as of Aug 31, 2021. It plans to resume cruise operations with 50 ships, or 61% of its capacity, by Nov 30, 2021 and with 71 ships, or 75% of its capacity, by June 2022. The company intends to have its full fleet back in operation in the spring of 2022.

Carnival has a Zacks Rank #4 (Sell).

Top Leisure Picks

Bluegreen Vacations Holding Corporation has a projected 2021 earnings growth rate of 172% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SeaWorld Entertainment, Inc. sports a Zacks Rank #1. Its bottom line has outperformed the Zacks Consensus Estimate in the trailing three quarters.

RCI Hospitality Holdings, Inc. (RICK - Free Report) has a Zacks Rank #2 (Buy) and a projected long-term earnings growth rate of 12%.


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