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Carnival (CCL) Up 9.8% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have added about 9.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carnival due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Carnival’s Q2 Earnings & Revenues Top Estimates, Rise Y/Y
Carnival reported second-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Earnings & Revenues
In the quarter under review, the company reported a loss per share of 31 cents, narrower than the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago quarter, the company reported adjusted loss per share of $1.64.
Revenues in the quarter totaled $4,911 million, beating the consensus mark of $4,791 million. The top line increased sharply from the prior-year quarter’s figure of $2,401 million. Passenger ticket and onboard and other revenues were $3,141 million and $1,770 million, respectively. The upside was primarily driven by strength in pricing, solid onboard spending levels and capacity-generation initiatives.
Q2 Financials
During the fiscal second quarter, the company reported a GAAP net loss of $407 million compared with a loss of $1,834 million in the prior-year quarter. Adjusted net loss in the quarter amounted to $395 million compared with $1,867 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of May 31, 2023, were $4,468 million compared with $5,455 million reported in the previous quarter. Carnival ended the quarter with liquidity of $7,336 million. Total debt (current and long-term) as of May 31, 2023, was $33.7 billion compared with $35.1 billion as of Feb 28, 2023.
Adjusted EBITDA, as of May 31, 2023, came in at 681 million against ($928) million reported in the prior-year quarter.
Bookings Update
During the fiscal second 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 fiscal 2024 cumulative advanced booked position exceeds the upper bound of historical range and at a favorable pricing.
Total customer deposits as of May 31 were $7.2 billion compared with $5.7 billion reported in the previous quarter. The amount was higher than $6 billion reported in third-quarter fiscal 2019.
2023 Outlook
For the third quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $2,050 and $2,150 million. The company expects fiscal third quarter adjusted income to be between $950 million and $1,050 million. Occupancy during the quarter is estimated to be more than 107%.
For fiscal 2023, the company anticipates adjusted EBITDA in the range of $4,100-$4,250 million compared with the previous expectation of $3,900-$4,100 million. 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?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Carnival has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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 #2 (Buy). We expect an above average return from the stock in the next few months.
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Carnival (CCL) Up 9.8% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have added about 9.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carnival due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Carnival’s Q2 Earnings & Revenues Top Estimates, Rise Y/Y
Carnival reported second-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
Earnings & Revenues
In the quarter under review, the company reported a loss per share of 31 cents, narrower than the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago quarter, the company reported adjusted loss per share of $1.64.
Revenues in the quarter totaled $4,911 million, beating the consensus mark of $4,791 million. The top line increased sharply from the prior-year quarter’s figure of $2,401 million. Passenger ticket and onboard and other revenues were $3,141 million and $1,770 million, respectively. The upside was primarily driven by strength in pricing, solid onboard spending levels and capacity-generation initiatives.
Q2 Financials
During the fiscal second quarter, the company reported a GAAP net loss of $407 million compared with a loss of $1,834 million in the prior-year quarter. Adjusted net loss in the quarter amounted to $395 million compared with $1,867 million reported in the year-ago quarter.
Balance Sheet
Cash and cash equivalents as of May 31, 2023, were $4,468 million compared with $5,455 million reported in the previous quarter. Carnival ended the quarter with liquidity of $7,336 million. Total debt (current and long-term) as of May 31, 2023, was $33.7 billion compared with $35.1 billion as of Feb 28, 2023.
Adjusted EBITDA, as of May 31, 2023, came in at 681 million against ($928) million reported in the prior-year quarter.
Bookings Update
During the fiscal second 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 fiscal 2024 cumulative advanced booked position exceeds the upper bound of historical range and at a favorable pricing.
Total customer deposits as of May 31 were $7.2 billion compared with $5.7 billion reported in the previous quarter. The amount was higher than $6 billion reported in third-quarter fiscal 2019.
2023 Outlook
For the third quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $2,050 and $2,150 million. The company expects fiscal third quarter adjusted income to be between $950 million and $1,050 million. Occupancy during the quarter is estimated to be more than 107%.
For fiscal 2023, the company anticipates adjusted EBITDA in the range of $4,100-$4,250 million compared with the previous expectation of $3,900-$4,100 million. 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?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Carnival has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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 #2 (Buy). We expect an above average return from the stock in the next few months.