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Carnival's (CCL) Gears Up for Q4 Earnings: What's in Store?

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Carnival Corporation (CCL - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Dec 20. In the last reported quarter, the company reported a negative earnings surprise of 14.4%.

Q4 Estimates

The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of $1.46 per share, indicating an improvement of 27.7% from a loss of $2.02 in the year-ago quarter.

The consensus mark for revenues stands at $1,483 million. In the prior-year quarter, the company had reported revenues of $34 million.

Factors to Note

Carnival’s fiscal fourth-quarter performance might have benefited from the resumption of operations. Earlier, the company stated that it will celebrate new year’s with 55 ships or nearly 65% of its fleet capacity back in service. The company intends to have its full fleet back in operation in the spring of 2022. CCL announced that Carnival Cruise Lines resumed more shifts out of the United States than any other cruise brand, and achieved occupancy above 70%.

Encouraging booking volumes and book position might get reflected in the company’s to-be-reported quarter’s results. During the third quarter, booking volumes for all future cruises were higher than booking volumes in the first quarter of 2021. Focus on cost reductions and streamlining of shoreside operations may have favored the company’s fiscal fourth-quarter performance.

Despite capacity constraints, the company continues to focus on rebalancing its portfolio through ship exits, transfer and modifications to newbuilds. Initiatives toward capitalizing on pent-up demand and structurally lower costs (resulting from the replacement of less-efficient vessels with more-efficient vessels) are likely to have benefited the company in the to-be-reported quarter.

However, cash burn is likely to have negatively impacted by the fiscal fourth-quarter performance. Average monthly cash burn in third-quarter 2021 was $510 million. 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.

Carnival Corporation Price and EPS Surprise Carnival Corporation Price and EPS Surprise

Carnival Corporation price-eps-surprise | Carnival Corporation Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Carnival 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.

Earnings ESP: Carnival has an Earnings ESP +3.50%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Consumer Discretionary Stocks Poised to Beat Earnings

Hyatt Hotels Corporation (H - Free Report) currently has an Earnings ESP of +80.44% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly loss has narrowed down by 4 cents in the last 30 days to 8 cents per share, suggesting an improvement of 95.5% from the year-ago quarter’s reported number.

Hyatt Hotels’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues stands at $1.08 billion, indicating growth of 155.6% from the prior-year reported figure. H’s stock has surged 10.6% in the past three months compared with the industry’s growth of 2.6%.

Mattel, Inc. (MAT - Free Report) currently has an Earnings ESP of +15.15% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings has moved down by 7 cents in the last 60 days to 33 cents per share, suggesting a decline of 17.5% from the year-ago quarter.

Mattel’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.66 billion, which suggests growth of 1.9% from the prior-year quarter. MAT’s stock has gained 1.4% in the past six months against the industry’s decline of 21%.

Hasbro, Inc. (HAS - Free Report) currently has an Earnings ESP of +1.38% and a Zacks Rank of 3. The company is likely to register a decline in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings has moved down by 29 cents in the last 60 days to 85 cents per share, suggesting a decline of 33.1% from the year-ago quarter.

Hasbro’s top line is anticipated to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.86 billion, which indicates a rise of 8.1% from the prior-year quarter. HAS’s stock has gained 8.3% in the past six months against the industry’s decline of 21%.


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