Carnival Corporation & plc ( CCL Quick Quote CCL - Free Report) reported mixed second-quarter fiscal 2022 (ended May 31, 2022) results, with earnings and revenues missing the Zacks Consensus Estimate. Both the metrics lagged the consensus mark for the seventh straight quarter. Nevertheless, the top and the bottom line improved on a year-over-year basis. During the quarter, the company’s operations were affected by the coronavirus-related effects, inflationary pressures and higher fuel prices. Also, CCL witnessed occupancy constraints on certain voyages owing to onboard staffing issues. In the quarter under review, the company reported a loss per share of $1.64, wider than the Zacks Consensus Estimate of a loss of $1.14. In the year-ago quarter, the company had reported a loss per share of $1.80.
Revenues in the quarter totaled $2,401 million, which fell short of the consensus mark of $2,834 million. The top line improved sharply from the prior-year quarter’s figure of $50 million. Passenger ticket and onboard and other revenues were $1,285 million and $1,116 million, respectively.
During the fiscal second quarter, the company reported an adjusted net loss of $1.9 billion. GAAP net loss for the quarter amounted to $1.8 billion.
In second-quarter fiscal 2022, occupancy came in at 69% compared with 54% reported in the prior quarter. Available lower berth days (“ALBD”) in the quarter were 16.7 million, marking 74% of total fleet capacity, up from 60% in first-quarter fiscal 2022. For cruise segments, revenue per PCD for the second quarter of 2022 declined slightly from robust 2019 levels. Balance Sheet
Cash, cash equivalents and short-term investments as of May 31, 2022, were $7.2 billion compared with $6.9 billion in the prior quarter. Carnival ended the quarter with liquidity of $7.5 billion. Total debt (current and long-term) as of May 31, 2022, was $35.1 billion compared with $34.9 billion as of Feb 28, 2022.
Adjusted EBITDA as of May 31, 2022, came in at $(928) compared with $(962) reported in the previous quarter. Bookings Update
During the fiscal second quarter, the company raised its booking position for the second half of 2022. Cumulative advance bookings for the second half of 2022 are below 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.
Carnival’s president, CEO and chief climate officer, Arnold Donald, said, “"It is reinforcing to see continued strength in demand with our guests overcoming far more restrictive protocols than broader society and travel at large, leading to a near doubling of booking volumes since last quarter with near-term bookings even outpacing 2019. We were encouraged by close-in demand and remain focused on optimizing occupancy while preserving long term pricing."
Meanwhile, total customer deposits as of May 31 were $5.1 billion compared with $3.7 billion as of Feb 28, 2022. As of Jun 24, 2022, 91% of the company's capacity had resumed guest cruise operations.
The company continues to expect a net loss for the third quarter and fiscal 2022. Given the ongoing resumption of guest cruise operations, the company anticipates continued improvement in adjusted EBITDA and occupancy throughout 2022. It expects to report positive adjusted EBITDA and occupancy (of 110%) during the third quarter of 2022.
Zacks Rank and Stocks to Consider
Currently, Carnival has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are Civeo Corporation ( CVEO Quick Quote CVEO - Free Report) , Funko, Inc. ( FNKO Quick Quote FNKO - Free Report) and Bluegreen Vacations Holding Corporation ( BVH Quick Quote BVH - Free Report) . Civeo sports a Zacks Rank #1 (Strong Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have soared 38.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for CVEO’s 2022 sales and EPS suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels. Funko sports a Zacks Rank #1 at present. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have increased 7.5% in the past year. The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels. Bluegreen Vacations flaunts a Zacks Rank #1. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has surged 38.6% in the past year. The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.