Back to top

Image: Bigstock

Carnival (CCL) Q1 Earnings & Revenues Lag Estimates, Rise Y/Y

Read MoreHide Full Article

Carnival Corporation & plc (CCL - Free Report) reported first-quarter fiscal 2022 (ended Feb 28, 2022) results, with earnings and revenues missing the Zacks Consensus Estimate. Both the metrics lagged the consensus mark for the sixth straight quarter. However, the top and bottom lines improved on a year-over-year basis.

In the quarter under review, the company reported a loss per share of $1.65, wider than the Zacks Consensus Estimate of a loss of $1.23. In the year-ago quarter, the company had reported a loss per share of $1.79.

Revenues in the quarter totaled $1,623 million, which fell short of the consensus mark of $2,331 million. However, the top line improved sharply from the prior-year quarter’s figure of $26 million. Passenger ticket and onboard and other revenues were $873 million and $750 million, respectively.

Carnival’s president, CEO and chief climate officer, Arnold Donald, said, “Despite the impact of Omicron, guests carried grew by nearly 20 percent in the first quarter compared to the prior quarter, while simultaneously increasing revenue per passenger cruise day and driving an improvement in adjusted EBITDA. We expect monthly adjusted EBITDA to turn positive by the beginning of our summer season as we build occupancy and return more ships to service.”

Q1 Financials

During the fiscal first quarter, the company reported an adjusted net loss of $1.9 billion. GAAP net loss for the quarter amounted to $1.9 billion.

In first-quarter 2022, occupancy was 54%, reflecting an increase of 20% in guests carried in the prior quarter. Available lower berth days (“ALBD”) for the quarter were 13 million, which represents 60% of total fleet capacity, up from 47% in the fourth quarter of 2021.

For cruise segments, revenue per PCD for the first quarter of 2022 rose nearly 7.5% compared to a robust 2019.

Carnival Corporation Price, Consensus and EPS Surprise Carnival Corporation Price, Consensus and EPS Surprise

Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote

Balance Sheet

Cash, cash equivalents and short-term investments as of Feb 28, 2022, were $6.9 billion, compared with $9.1 billion in the prior quarter. Carnival ended the quarter with liquidity of $7.2 billion. Total debt (current and long-term) as of Feb 28, 2022, was $34.9 billion compared with $33.2 billion as of Nov 30, 2021.

Bookings Update

During first-quarter 2022, the company improved its booking position for the second half of 2022. Cumulative advance bookings for the second half of 2022 are at the lower end of the historical range. The company stated that cumulative advanced bookings for the first half of 2023 are at the higher end of historical ranges and at increased prices compared with 2019 levels.

Meanwhile, total customer deposits as of Feb 28 were $3.7 billion compared with $3.5 billion as of Nov 30, 2021.

Resumption Plan

As of Mar 22, 75% of the company's capacity had resumed guest cruise operations. The company anticipates having each brand's full fleet back in guest cruise operations for its respective summer season.

Guidance

The company continues to expect to report a net loss for the second quarter and the full year of 2022. However, it anticipates reporting profit in the third quarter of fiscal 2022.

Zacks Rank and Stocks to Consider

Currently, Carnival carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Zacks Consumer Discretionary sector are Cedar Fair, L.P. (FUN - Free Report) , RCI Hospitality Holdings, Inc. (RICK - Free Report) and Bluegreen Vacations Holding Corporation . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cedar Fair carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have increased 16.9% in the past year.

The Zacks Consensus Estimate for FUN’s 2022 sales and EPS indicates a rise of 33.8% and 612.7%, respectively, from the year-ago period’s levels.

RCI Hospitality has a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 63.2%, on average. Shares of RCI Hospitality have gained 7.1% in the past year.

The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 33.9% and 19.6%, respectively, from the year-ago period’s levels.

Bluegreen Vacations carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 425.1%, on average. Shares of Bluegreen Vacations have increased 60.5% in the past year.

The Zacks Consensus Estimate for BVH’s 2022 sales and EPS suggests growth of 8.3% and 20.8%, respectively, from the year-ago period’s levels.

Published in