HomeMost PopularSmooth Sailing: Carnival Delivers Impressive Q1 Earnings, Riding the High Seas of...

Smooth Sailing: Carnival Delivers Impressive Q1 Earnings, Riding the High Seas of Success

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Ahoy there, investors! Carnival Corporation & plc (CCL) has set sail to success with its first-quarter fiscal 2024 earnings that exceeded expectations. Both earnings and revenues outperformed the Zacks Consensus Estimate, showcasing a year-over-year growth. The wind in their sails? Unwavering demand and increased bookings at premium rates. As a result, the company’s shares surged 4.9% in pre-market trading.

Navigating Earnings & Revenues

During the reviewed quarter, Carnival reported an adjusted loss per share of 14 cents, surpassing the Zacks Consensus Estimate of an 18-cent loss. A stark improvement from the 55-cent loss reported in the prior year.

Revenues blazed ahead, reaching $5.4 billion, slightly above the consensus forecast. In the same period last year, CCL raked in $4.4 billion in revenues.

Setting Course with Fiscal Performance

Carnival Corporation Price, Consensus and EPS Surprise

Behold the trajectory of Carnival Corporation’s financial voyage | Carnival Corporation Quote

Passenger ticket revenues for the first quarter of fiscal 2024 stood at $3.6 billion, a leap from $2.9 billion in the prior-year period. Meanwhile, Onboard and other revenues climbed to $1.8 billion from $1.6 billion. The company’s journey continues to defy gravity – surpassing expectations.

The Healthy Financial Plank

In the first fiscal quarter, Carnival reported a GAAP net loss of $214 million compared to $693 million in the previous year. The adjusted net loss settled at $180 million as opposed to $690 million in the corresponding quarter last year.

Checking the Financial Tide

As of February 29, 2024, Carnival held $2.2 billion in cash and cash equivalents – weathering the storms with resilience. The balance sheet boasted $5.2 billion in liquidity. Total debt for the period stood at $30.7 billion, a modest increase from $30.6 billion on November 30, 2023. Adjusted EBITDA for February 29, 2024, rose to $871 million from $382 million in the prior year.

Charting the Bookings Seas

The company announced a buoyant outlook with robust bookings in the North America and Europe regions. Demand exceeded expectations, propelling prices higher and extending booking windows. Carnival’s ticket to success included solid bookings for the year and robust customer deposits of $7 billion on February 29.

Passengers flocked to secure their spots on future voyages, painting a promising picture for the remainder of the year.

Looking Ahead to 2024

Steering into the second quarter of fiscal 2024, Carnival anticipates an adjusted EBITDA of approximately $1.05 billion. The company expects an adjusted net loss of nearly ($35) million and a loss per share of 3 cents for the same period.

For the full fiscal year, the outlook remains positive, with expected adjusted EBITDA of $5.63 billion, net income of $1.3 billion, and an adjusted EPS of 98 cents.

Market Insights and Stock Navigation

Carnival currently holds a Zacks Rank #3 (Hold). For investors seeking alternative options in the Consumer Discretionary sector, consider these promising stocks:

Royal Caribbean Cruises Ltd. (RCL), with a Zacks Rank #1 (Strong Buy), boasting an average earnings surprise of 26.4% and a remarkable 126.3% share surge over the past year.

Trip.com Group Limited (TCOM) holds a Zacks Rank #2 (Buy) and has shown consistent earnings surprises, with a 53.1% average surprise and a 23.6% share gain over the past year.

Hyatt Hotels Corporation (H), with a Zacks Rank #2 and an admirable earnings surprise track record of 17.8%, alongside a 52.9% share increase in the past year.

With the wind in their sails, these stocks offer unique opportunities for investors seeking promising prospects in the market.

What are you waiting for? Chart your course to success with these top stocks!

Fair winds and following seas on your investment journey!

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