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Why Is Carnival (CCL) Down 4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Carnival due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Carnival Q1 Earnings & Revenues Top Estimates, Rise Y/Y
Carnival reported first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line improved on a year-over-year basis.
Earnings & Revenues
In the quarter under review, the company reported a loss per share of 55 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents. In the year-ago quarter, the company had reported a loss per share of $1.66.
Revenues in the quarter totaled $4,432 million, beating the consensus mark of $4,351 million. The top line improved sharply from the prior-year quarter’s figure of $1,623 million. Passenger ticket and onboard and other revenues were $2,870 million and $1,563 million, respectively.
Q1 Financials
During the fiscal first quarter, the company reported a GAAP net loss of $693 million compared with a loss of $1,891 million in the prior-year quarter. Adjusted net loss in the quarter amounted to $690 million compared with $1,884 million reported in the year-ago quarter.
In first-quarter fiscal 2023, occupancy came in at 91% compared with 54% reported in the prior quarter.
Balance Sheet
Cash and cash equivalents as of Feb 28, 2023, were $5,455 million compared with $4,029 million reported in the previous quarter. Carnival ended the quarter with liquidity of $8,105 million. Total debt (current and long-term) as of Feb 28, 2023, was $35.1 billion compared with $34.5 billion as of Nov 30, 2022.
Adjusted EBITDA, as of Feb 28, 2023, came in at 382 million against ($962) million reported in the prior-year quarter.
Bookings Update
During the fiscal first quarter, the company reported solid bookings for the North America and Australia and Europe segments. The upside was backed by strong demand, bundled package offerings and pre-cruise sales. Also, it stated the benefits from increased advertising activities. The company stated that its 2023 cumulative advanced booked position is at increased prices compared with 2019 levels.
Meanwhile, total customer deposits as of Feb 28 were $5.7 billion compared with $5.1 billion reported in the previous quarter. The amount was higher than $4.9 billion reported in 2019.
2023 Outlook
In the second quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $600-$700 million. Occupancy during the quarter is estimated to be more than 98%.
For fiscal 2023, the company anticipates adjusted EBITDA in the range of $3.9-$4.1 billion. It expects sequential improvements in adjusted EBITDA (per ALBD) compared with 2019 levels. In fiscal 2023, the company anticipates occupancy to reach historical levels of 100% (or higher).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -16.81% due to these changes.
VGM Scores
At this time, Carnival has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carnival has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Carnival (CCL) Down 4% Since Last Earnings Report?
A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Carnival due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Carnival Q1 Earnings & Revenues Top Estimates, Rise Y/Y
Carnival reported first-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line improved on a year-over-year basis.
Earnings & Revenues
In the quarter under review, the company reported a loss per share of 55 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents. In the year-ago quarter, the company had reported a loss per share of $1.66.
Revenues in the quarter totaled $4,432 million, beating the consensus mark of $4,351 million. The top line improved sharply from the prior-year quarter’s figure of $1,623 million. Passenger ticket and onboard and other revenues were $2,870 million and $1,563 million, respectively.
Q1 Financials
During the fiscal first quarter, the company reported a GAAP net loss of $693 million compared with a loss of $1,891 million in the prior-year quarter. Adjusted net loss in the quarter amounted to $690 million compared with $1,884 million reported in the year-ago quarter.
In first-quarter fiscal 2023, occupancy came in at 91% compared with 54% reported in the prior quarter.
Balance Sheet
Cash and cash equivalents as of Feb 28, 2023, were $5,455 million compared with $4,029 million reported in the previous quarter. Carnival ended the quarter with liquidity of $8,105 million. Total debt (current and long-term) as of Feb 28, 2023, was $35.1 billion compared with $34.5 billion as of Nov 30, 2022.
Adjusted EBITDA, as of Feb 28, 2023, came in at 382 million against ($962) million reported in the prior-year quarter.
Bookings Update
During the fiscal first quarter, the company reported solid bookings for the North America and Australia and Europe segments. The upside was backed by strong demand, bundled package offerings and pre-cruise sales. Also, it stated the benefits from increased advertising activities. The company stated that its 2023 cumulative advanced booked position is at increased prices compared with 2019 levels.
Meanwhile, total customer deposits as of Feb 28 were $5.7 billion compared with $5.1 billion reported in the previous quarter. The amount was higher than $4.9 billion reported in 2019.
2023 Outlook
In the second quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $600-$700 million. Occupancy during the quarter is estimated to be more than 98%.
For fiscal 2023, the company anticipates adjusted EBITDA in the range of $3.9-$4.1 billion. It expects sequential improvements in adjusted EBITDA (per ALBD) compared with 2019 levels. In fiscal 2023, the company anticipates occupancy to reach historical levels of 100% (or higher).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -16.81% due to these changes.
VGM Scores
At this time, Carnival has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carnival has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.