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Carnival (CCL) to Report Q1 Earnings: What's in the Cards?

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Carnival Corporation & plc (CCL - Free Report) is scheduled to report its first-quarter fiscal 2024 results on Mar 27, 2024, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 41.7%.

How Are Estimates Placed?

For the quarter to be reported, the Zacks Consensus Estimate for loss per share improved to 17 cents from 18 cents in the past 30 days. In the prior-year quarter, CCL reported a loss per share of 55 cents.

Carnival Corporation Price and EPS Surprise

 

Carnival Corporation Price and EPS Surprise

Carnival Corporation price-eps-surprise | Carnival Corporation Quote

 

The consensus mark for revenues is pegged at $5.4 billion, suggesting growth of 21.9% from the year-ago reported figure of $4.43 billion.

Factors to Note

Carnival’s fiscal first-quarter revenues are expected to increase year over year, driven by improvements in occupancy, booking activities and a strong pricing landscape. Robust demand backed by new marketing campaigns and elevated onboard spending through bundled package offerings and pre-cruise sales is likely to have aided the company’s performance in the to-be-reported quarter.

Increased revenues from its onboard and passenger tickets are likely to have driven the fiscal first-quarter top line. Our model estimates fiscal first-quarter passenger ticket revenues to rise 13.1% year over year to $3.25 billion. We expect onboard and other revenues to increase 33.5% year over year to $2.09 billion.

For the first quarter of fiscal 2024, the company expects adjusted EBITDA to be around $0.8 billion, compared with 0.38 billion in the year-ago quarter. It expects fiscal first-quarter adjusted net loss to be around ($0.28) billion compared with (0.69) billion in the year-ago quarter. It expects a fiscal first-quarter adjusted loss per share to be approximately 22 cents.

However, high costs are likely to have hurt the company’s bottom line. For the fiscal first quarter, it anticipates adjusted cruise costs to remain elevated sequentially, buoyed by a rise in occupancy levels and dry-dock- cost and seasonality of advertising expense.

In the quarter to be reported, the company anticipates adjusted cruise costs, excluding fuel per available lower berth day, to increase by approximately 9.5% from 2023 levels. Per our model, total operating expenses in the fiscal first quarter are anticipated to rise 10.9% year over year to $3.67 billion.

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 of +6.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Carnival has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some 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.

PVH Corp. (PVH - Free Report) has an Earnings ESP of +1.51% and a Zacks Rank #2.

PVH’s earnings for the to-be-reported quarter are expected to increase 47.1% year over year. Notably, the company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 18.9%.

Guess?, Inc. (GES - Free Report) has an Earnings ESP of +2,100.00% and a Zacks Rank #3.

GES is expected to register a 85.7% year-over-year increase in earnings for the to-be-reported quarter. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 42.1%.

Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +1.07% and a Zacks Rank #3.

BYD’s earnings for the to-be-reported quarter are expected to decline 8.2% year over year. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 6.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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