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Carnival (CCL) to Report Q1 Earnings: What's in the Offing?
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Carnival Corporation (CCL - Free Report) is scheduled to report first-quarter fiscal 2022 results on Mar 22. In the last reported quarter, the company delivered a negative earnings surprise of 18.6%.
Q1 Estimates
The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of $1.23 per share, indicating an improvement of 31.3% from a loss of $1.79 reported in the year-ago quarter.
The consensus mark for revenues stands at nearly $2,220 million. In the prior-year quarter, the company had reported revenues of $26 million.
Factors to Note
Carnival’s fiscal first-quarter performance is likely to have benefited from the resumption of operations. As of fiscal 2021 end, the company resumed cruise operations with 50 ships (68% of its fleet capacity). The company intends to have its full fleet back in operation in the spring of 2022. Encouraging booking volumes and book position are likely to have favored the to-be-reported quarter’s performance. Focus on cost reductions and streamlining of shoreside operations might have contributed to the fiscal first-quarter bottom line. During the fiscal first quarter, booking volumes for all future cruises are likely to be higher than booking volumes in the fourth quarter of 2021.
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 coupled with 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 may have weighed on the fiscal first-quarter results. 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.
Our proven model doesn’t predict 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Carnival has an Earnings ESP of +2.18%. 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 #4 (Sell).
Stocks Poised to Beat Earnings
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
Shares of Oxford have increased 2.4% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.
Whirlpool Corporation (WHR - Free Report) has an Earnings ESP of +7.36% and a Zacks Rank #2.
Shares of Whirlpool have declined 4.7% in the past six months. WHR’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 14.9%.
The ONE Group Hospitality, Inc. (STKS - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank #3.
Shares of The ONE Group have gained 45.6% in the past year. STKS’ earnings topped the consensus mark thrice but missed the same on one occasion. The company has a trailing four-quarter earnings surprise of 34.5%, on average.
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Carnival (CCL) to Report Q1 Earnings: What's in the Offing?
Carnival Corporation (CCL - Free Report) is scheduled to report first-quarter fiscal 2022 results on Mar 22. In the last reported quarter, the company delivered a negative earnings surprise of 18.6%.
Q1 Estimates
The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of $1.23 per share, indicating an improvement of 31.3% from a loss of $1.79 reported in the year-ago quarter.
The consensus mark for revenues stands at nearly $2,220 million. In the prior-year quarter, the company had reported revenues of $26 million.
Factors to Note
Carnival’s fiscal first-quarter performance is likely to have benefited from the resumption of operations. As of fiscal 2021 end, the company resumed cruise operations with 50 ships (68% of its fleet capacity). The company intends to have its full fleet back in operation in the spring of 2022. Encouraging booking volumes and book position are likely to have favored the to-be-reported quarter’s performance. Focus on cost reductions and streamlining of shoreside operations might have contributed to the fiscal first-quarter bottom line. During the fiscal first quarter, booking volumes for all future cruises are likely to be higher than booking volumes in the fourth quarter of 2021.
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 coupled with 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 may have weighed on the fiscal first-quarter results. 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-eps-surprise | Carnival Corporation Quote
What the Zacks Model Unveils
Our proven model doesn’t predict 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Carnival has an Earnings ESP of +2.18%. 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 #4 (Sell).
Stocks Poised to Beat Earnings
Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.
Shares of Oxford have increased 2.4% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.
Whirlpool Corporation (WHR - Free Report) has an Earnings ESP of +7.36% and a Zacks Rank #2.
Shares of Whirlpool have declined 4.7% in the past six months. WHR’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 14.9%.
The ONE Group Hospitality, Inc. (STKS - Free Report) has an Earnings ESP of +12.00% and a Zacks Rank #3.
Shares of The ONE Group have gained 45.6% in the past year. STKS’ earnings topped the consensus mark thrice but missed the same on one occasion. The company has a trailing four-quarter earnings surprise of 34.5%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.