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Carnival Corp. demand fuels earnings, revenue beat

EditorHari G
Published 09/29/2023, 10:30 AM
© Reuters.  Carnival Corp. (CCL) demand fuels earnings, revenue beat
CCL
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Carnival Corporation (NYSE:CCL) shares jumped at the start of Friday's session after the company reported earnings before the bell, topping analyst consensus expectations.

The company's US-listed shares hit a high of $15.24 in the early part of the session before retracing.

The cruise line company reported Q3 EPS of $0.86, $0.10 better than the analyst estimate of $0.76, while revenue for the quarter came in at $6.85 billion, above the consensus estimate of $6.7B.

The company experienced strong demand during the quarter, continuing the theme of a robust consumer appetite for travel. Total customer deposits during the third quarter reached a record of $6.3B, while booking volumes "continued at significantly elevated levels," setting a new third-quarter record for total bookings.

"We are maintaining strong momentum and continuing to build demand through our improved commercial execution. Booking volumes during the quarter were running nearly 20 percent above 2019 levels and multiples of our capacity growth, which has continued into September," commented Carnival Corporation & plc's Chief Executive Officer Josh Weinstein.

For the fourth quarter, the company expects adjusted EBITDA of $800 million to $900 million, while net yields are expected to be up mid-single digits compared to 2019, with occupancy in line with historical levels.

For the full-year 2023, CCL expects adjusted EBITDA of $4.1B to $4.2B, with occupancy of 100% or higher.

Looking further ahead, CCL said its cumulative advanced booked position for FY2024 is "well above the high end" of the historical range at higher prices than 2023 levels.

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