Carnival Corporation & plc (CCL) reported impressive fourth-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Carnival continues to enhance shareholder value through improved operational efficiency across its fleet. The company has reache ...

Financial Data and Key Metrics Changes - The company reported a fourth-quarter net income improvement of over $250 million year-over-year, exceeding expectations by over $125 million [8] - Full-year revenues reached an all-time high of $25 billion, with cash from operations nearly $6 billion [9] - The yield for 2024 increased by 11%, significantly driven by higher prices, with yields finishing nearly 250 basis points better than original guidance [9][11] - The company achieved a 4.3 times net debt to EBITDA ratio, a nearly two and a half turn improvement from 2023 [41] Business Line Data and Key Metrics Changes - The company experienced broad-based price increases across all major brands, with price growth ranging from mid-single-digit to mid-teen percentages [10] - Onboard spending levels accelerated sequentially each quarter throughout the year, contributing to the overall yield growth [10][20] Market Data and Key Metrics Changes - Booking volumes for 2025 were higher year-on-year, with both price and occupancy increasing for each quarter [14] - North American and European segments achieved their longest advanced booking windows on record, indicating strong demand [15] Company Strategy and Development Direction - The company is focusing on enhancing its destination strategy, with the opening of Celebration Key planned for July 2025, which is expected to drive significant customer interest [26][29] - The company aims to improve operational execution across its brands and enhance marketing efforts to attract new cruise guests [20][23] - Sustainability efforts are ongoing, with a target of a 20% reduction in greenhouse gas emissions intensity by the end of 2026 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 being another strong year, with yield growth expected to exceed 4% [13] - The company is optimistic about achieving investment-grade leverage metrics by 2026, with ongoing debt reduction efforts [41][43] Other Important Information - The company has paid down over $8 billion of debt since January 2023, significantly reducing interest expenses [32] - The company is actively working on enhancing customer awareness of its destinations, aiming to attract both cruisers and non-cruisers [70][72] Q&A Session Summary Question: Can you elaborate on the foundation laid over the last two years? - Management highlighted restructuring efforts, improved revenue management, and enhanced marketing as key components of their strategy [51][54] Question: What is the breakdown of net cruise cost ex-fuel components? - The increase in cruise costs was attributed to several factors, including inflation and higher advertising expenses, partially offset by efficiency initiatives [58][60] Question: How is the customer awareness of Celebration Key? - Management acknowledged that awareness is still ramping up as the destination is not yet operational, but they are building excitement [66][67] Question: What is the expected impact of Celebration Key on yield guidance? - Celebration Key is included in the guidance, but it currently represents only 5% of total sailings for 2025 [95] Question: How sustainable is the organic growth being observed? - Management indicated that both industry trends and internal improvements contribute to the organic growth, with a focus on enhancing customer experiences [106][108] Question: What is the company's long-term leverage target? - The current target is to achieve investment-grade metrics, with no specific target set for a two times leverage ratio at this time [134]

Core Insights - Carnival reported revenue of $5.94 billion for the quarter ended November 2024, marking a year-over-year increase of 10% and exceeding the Zacks Consensus Estimate by 0.05% [1] - The company achieved an EPS of $0.14, a significant improvement from -$0.07 a year ago, resulting in an EPS surprise of 75% compared to the consensus estimate of $0.08 [1] Financial Metrics - Available lower berth days (ALBDs) were reported at 23.9 million, slightly below the average estimate of 23.94 million [3] - The occupancy percentage reached 103%, surpassing the estimated 102.7% [3] - Passenger cruise days (PCDs) totaled 24.6 million, slightly above the average estimate of 24.59 million [3] - Fuel cost per metric ton consumed was $618, higher than the average estimate of $590.42 [3] - Net yields per ALBD were reported at $190.53, marginally above the average estimate of $190.52 [3] - Fuel consumption was 700 Kmt, closely aligning with the estimated 699.83 Kmt [3] - Revenue from passenger tickets was $3.85 billion, slightly below the average estimate of $3.87 billion, reflecting a year-over-year increase of 9.8% [3] - Onboard and other revenues reached $2.08 billion, exceeding the average estimate of $2.06 billion, with a year-over-year change of 10.5% [3] - Revenues from tours and other activities were $33 million, below the average estimate of $33.39 million, indicating a year-over-year decline of 34% [3] Stock Performance - Over the past month, Carnival's shares have returned -0.7%, matching the Zacks S&P 500 composite's -0.7% change [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [4]

Core Insights - Carnival's fiscal fourth-quarter results for 2024 exceeded expectations, continuing a trend of strong performance in the cruise line industry [1][3][8] - The company has consistently topped earnings expectations over the past two years, with analysts raising price targets for the stock [3][9] - Carnival's adjusted profit for the quarter was significantly higher than previous guidance, showcasing its ability to outperform market predictions [11] Financial Performance - Revenue for the quarter rose 10% to $5.94 billion, surpassing Wall Street projections [10] - Adjusted earnings per share (EPS) reached $0.14, doubling analysts' expectations and marking the sixth consecutive quarter of double-digit percentage beats [11] - Customer deposits for future sailings increased to $6.4 billion, a 7% rise year-over-year, indicating strong demand [6] Market Position - Carnival shares have more than tripled since the beginning of 2023, reflecting investor confidence and strong financial results [9] - The stock is currently trading at less than 15 times projected earnings for the new fiscal year, suggesting it may be undervalued [7] - The company has reduced its debt by over $8 billion in the past two years, positioning itself for continued growth into fiscal 2025 [15] Future Outlook - The near-term outlook for Carnival is promising, with strong bookings for the next two fiscal years [14] - The company is expected to maintain solid performance in the upcoming quarters, supported by favorable market conditions [13][14]

MIAMI (December 20, 2024) - Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced financial results for the fourth quarter and full year 2024 and provided an outlook for the first quarter and full year 2025. "We are delivering long-term value for our shareholders through improved operational execution across our brands, essentially on a same ship basis. We ended 2024 with adjusted ROIC of 11 percent, comfortably above our cost of capital. In fact, with one year down, we're already over 80 percent ...

Expects to hit 2026 SEA Change EBITDA target one year early MIAMI, Dec. 20, 2024 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK) announced financial results for the fourth quarter and full year 2024 and provided an outlook for the first quarter and full year 2025. Key Highlights  Full year revenues hit an all-time high of $25 billion, over 15 percent higher than the prior year, with continued strength in demand. Full year net income of $1.9 billion; adjusted net income1 of $1.9 billio ...

Carnival Corporation CCL will release its fourth-quarter financial results, before the opening bell, on Friday, Dec. 20.Analysts expect the Miami, Florida-based company to report quarterly earnings at 7 cents per share, versus a year-ago loss of 7 cents per share. Carnival projects quarterly revenue of $5.93 billion, compared to $5.4 billion a year earlier, according to data from Benzinga Pro.On Sept. 30, Carnival posted third-quarter adjusted earnings of $1.27 per share, beating analysts’ estimates of $1.1 ...

Core Viewpoint - Carnival is expected to report strong fourth-quarter results, with significant earnings growth and sales increase compared to the previous year [1][2] Financial Performance - Analysts predict Carnival will report quarterly earnings of 8 cents per share, representing a 214.3% improvement year-over-year [1] - Sales are projected to increase by 10% to $5.94 billion [1] Market Position and Strategy - Carnival holds a Zacks Rank 2 (Buy), indicating strong market confidence [2] - The company benefits from strong brand recognition and effective marketing strategies [2] - Carnival is focused on fleet optimization and expansion to enhance its market position [2] Earnings Surprise and Expectations - Carnival has a trailing four-quarter average earnings surprise of 318.1%, indicating a history of exceeding earnings expectations [2] - The Zacks Earnings ESP indicator suggests another potential earnings beat for the upcoming announcement [2]

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Core Viewpoint - Carnival Corporation & plc is expected to report strong fiscal fourth-quarter results driven by robust demand, strategic cost management, and growth initiatives, with earnings per share estimated at 8 cents compared to a loss of 7 cents in the prior year [1][6][19] Financial Performance - The Zacks Consensus Estimate for fiscal fourth-quarter revenues is $5.94 billion, indicating a 10% growth from the previous year [1] - Carnival's earnings have consistently outperformed estimates, with an average surprise of 318.1% over the last four quarters [2] - The company anticipates fiscal fourth-quarter net yields to rise by 5% on a constant-currency basis compared to 2023 levels [8] Revenue Breakdown - Estimated passenger ticket revenues for the fiscal third quarter are projected to increase by 9.3% year over year to $3.8 billion, while onboard and other revenues are expected to rise by 5.3% to $1.9 billion [7] Cost Management - Cruise costs, excluding fuel, are expected to increase by 8% due to higher dry dock activity and advertising expenditures [9] - Despite cost pressures, Carnival aims to generate approximately $1.14 billion in Adjusted EBITDA for the fiscal fourth quarter, reflecting a balance between growth and financial discipline [8][19] Stock Performance - Carnival's stock has increased by 54.1% over the past six months, outperforming the industry average growth of 18.7% [10] - The company is trading at a forward 12-month price-to-earnings ratio of 14.32, below the industry average of 20.59, indicating a relatively attractive valuation [14] Strategic Initiatives - Carnival has raised its full-year yield guidance for the third time in 2024, with 99% of ticket revenue already booked, indicating strong demand trends [15] - The company is investing in next-generation ships and modernizing its fleet, with a disciplined order book that includes only three ship deliveries planned through 2028 [16][17] Long-term Outlook - Carnival's focus on high-margin yield growth, free cash flow generation, and aggressive debt reduction of $7.3 billion since 2023 positions it well for long-term success [18] - The company is expected to create significant shareholder value while maintaining its leadership in the global cruise industry [18][20]