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Factors Setting the Tone for Carnival's (CCL) Q4 Earnings
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Carnival Corporation (CCL - Free Report) is scheduled to report its fourth-quarter fiscal 2022 results on Dec 21. In the last reported quarter, the company reported a negative earnings surprise of 383.3%.
How are Estimates Placed?
The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of 89 cents per share, indicating an improvement of 48.3% from a loss of $1.72 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $3,959 million. The metric suggests an increase of 207.7% from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Carnival’s fiscal fourth-quarter performance is likely to have benefited from the resumption of cruise services, improved booking trends and fleet optimization efforts. During the previous quarter, the company reported accelerated booking volumes because of relaxed protocols and better alignment of land-based vacation alternatives. Also, it reported improvement in new-to-cruise demand trends courtesy of its digital performance marketing and lead generation approach, focus on trade relationships, innovative ships and personalized service offerings. Given the solid demand and focus on advertising investments and capacity growth efforts, the momentum is likely to have continued in the fiscal fourth quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the fiscal fourth-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $2,555 million and $1,648 million compared with $674 million and $613 million, respectively, reported in the prior-year quarter.
However, pricing and limited promotions in opaque channels are likely to have impacted the company’s cumulative book position for the fourth quarter of fiscal 2022 (compared with 2019 levels). The invasion of Ukraine and its resulting impacts (including supply chain disruptions, increased fuel prices and international sanctions) are likely to have affected the company’s operations in the to-be-reported quarter.
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 +0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +19.32% and a Zacks Rank of 2. Shares of Caesars Entertainment have declined 45.2% in the past year. CZR’s earnings surpassed estimates twice in the trailing four quarters and missed twice, the average surprise being negative 3.7%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #3. Shares of Hilton have declined 6.7% in the past year. HLT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 11.9%.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #3. Shares of Planet Fitness have declined 7.2% in the past year. PLNT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 6.6%.
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Factors Setting the Tone for Carnival's (CCL) Q4 Earnings
Carnival Corporation (CCL - Free Report) is scheduled to report its fourth-quarter fiscal 2022 results on Dec 21. In the last reported quarter, the company reported a negative earnings surprise of 383.3%.
How are Estimates Placed?
The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of 89 cents per share, indicating an improvement of 48.3% from a loss of $1.72 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $3,959 million. The metric suggests an increase of 207.7% from the year-ago quarter’s figure.
Carnival Corporation Price and EPS Surprise
Carnival Corporation price-eps-surprise | Carnival Corporation Quote
Let's look at how things have shaped up in the quarter.
Factors to Note
Carnival’s fiscal fourth-quarter performance is likely to have benefited from the resumption of cruise services, improved booking trends and fleet optimization efforts. During the previous quarter, the company reported accelerated booking volumes because of relaxed protocols and better alignment of land-based vacation alternatives. Also, it reported improvement in new-to-cruise demand trends courtesy of its digital performance marketing and lead generation approach, focus on trade relationships, innovative ships and personalized service offerings. Given the solid demand and focus on advertising investments and capacity growth efforts, the momentum is likely to have continued in the fiscal fourth quarter.
Increased revenue generation from its onboard and passenger ticket is likely to have driven the fiscal fourth-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $2,555 million and $1,648 million compared with $674 million and $613 million, respectively, reported in the prior-year quarter.
However, pricing and limited promotions in opaque channels are likely to have impacted the company’s cumulative book position for the fourth quarter of fiscal 2022 (compared with 2019 levels). The invasion of Ukraine and its resulting impacts (including supply chain disruptions, increased fuel prices and international sanctions) are likely to have affected the company’s operations in the to-be-reported quarter.
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 +0.98%. 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 Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +19.32% and a Zacks Rank of 2. Shares of Caesars Entertainment have declined 45.2% in the past year. CZR’s earnings surpassed estimates twice in the trailing four quarters and missed twice, the average surprise being negative 3.7%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #3. Shares of Hilton have declined 6.7% in the past year. HLT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 11.9%.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank #3. Shares of Planet Fitness have declined 7.2% in the past year. PLNT’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 6.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.