Carnival Corporation & plc (CCL) reported impressive third-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes.Owing to strong demand and cost-saving opportunities, the company raised its full-year 2024 adjusted EBITDA guidance. Management expects net yields, at constant currency, to increase around 10.4% compare ...

Shares of Carnival Corp CCL tanked in early trading on Tuesday, even after the company reported upbeat third-quarter earnings.The Miami-based company reported its results amid an exciting earnings season. Here are some key analyst takeaways.Truist Securities analyst Patrick Scholes reiterated a Hold rating and price target of $20.Morgan Stanley analyst Jamie Rollo maintained an Underweight rating, while raising the price target from $15.00 to $16.50.Stifel analyst Steven M. Wieczynski reaffirmed a Buy ratin ...

Monday, September 30th, 2024Market fortunes resumed on this last trading day of September and calendar Q3. New all-time high closes on the Dow and S&P 500 again lead the way into Q4. The Dow eked out +17 points, +0.04%, to 42,330, while the S&P led all major indexes, +0.42%, to 5762. The Nasdaq rose +0.38% on the day, still -3% from its all-time highs back in July of this year, as it is with the small-cap Russell 2000, +0.09% for the session.A Very Brief History of Q3 in the Stock MarketCalendar third quart ...

Financial Data and Key Metrics - Revenue hit an all-time high of almost $8 billion, up $1 billion from last year's record levels [6] - Record EBITDA exceeded $2.8 billion, up $600 million over last year and $160 million over guidance [6] - Net income increased by over 60% compared to the prior year, achieving double-digit ROIC [6] - Full-year EBITDA guidance raised to $6 billion, $600 million above the prior peak and $400 million above original guidance [7] - ROIC expected to end the year at 10.5%, 1.5 points better than original guidance and almost double last year's ending point [7] - Customer deposits reached a record $7 billion in Q3, driven by strong bookings for 2024, 2025, and 2026 [9] Business Line Performance - High-margin same-ship yield growth across all major brands, not driven by capacity growth [6] - Onboard spending levels increased, with year-over-year improvement in onboard per diems accelerating [9] - All core deployments for 2025 are at higher prices than the prior year, with every brand well booked at higher pricing [8] - Nearly half of 2025 is already booked, with a widening price advantage compared to last year [8] - Record booking volumes for 2026 achieved in the last three months [9] Market Performance - European brands saw outsized growth in occupancy, up 5 percentage points compared to Q3 2023 [16] - Strong demand in both North America and Europe, with higher occupancy and pricing across all regions [24] - Web visits up over 40% versus 2019, paid search up more than 60%, and natural search up over 70% [12] - New-to-cruise and repeat guests both increased by double-digit percentages over last year [12] Strategic Direction and Industry Competition - Focus on high-margin same-ship yield growth and operational efficiency [6][13] - Introduction of new ships like Sun Princess and Star Princess, along with modernization programs like AIDA evolution [9][10] - Development of new destinations like Celebration Key and Half Moon Cay, expected to reduce fuel costs and environmental footprint [10][11] - Marketing efforts increased in Q4, with a focus on driving demand well in excess of capacity growth [11][12] - Limited new ship orders through 2028, with only three ships scheduled for delivery over the next four years [13] Management Commentary on Operating Environment and Future Outlook - Strong demand and pricing trends expected to continue into 2025 and 2026 [8][9] - Focus on debt reduction and achieving investment-grade metrics, with a clear path to further debt paydown [13][22] - Expectation of substantial free cash flow driven by operational execution and low newbuild order book [22] - Management expressed confidence in maintaining momentum and achieving SEA Change targets [14][55] Other Important Information - Hurricane Helene had an insignificant financial impact on the company, with costs in the millions [81] - The company is not pursuing the Chinese market at this time, focusing instead on other regions like Japan and Taiwan [77] - The company is well-positioned to handle potential disruptions, such as conflicts in the Middle East, due to its mobile fleet and strong source markets [48] Q&A Session Summary Question: Momentum into 2025 and 2026 - The company is seeing broad-based strength across all regions, with higher occupancy and pricing for 2025 [24] - The booking curve has been pulled forward, allowing the company to take price [24] Question: Capital Priorities and Debt Reduction - The company's top priority is debt reduction, with a goal of achieving investment-grade metrics by the end of 2026 [26] Question: Fourth Quarter Yield Guidance - No significant change in yield guidance for Q4, with strong demand expected to continue [29] Question: Booking Window and Demand for Celebration Key - The company is managing the booking curve to maximize revenue, with some brands pulling back to avoid leaving money on the table [31] - Celebration Key is expected to provide a premium in 2026, with 19 ships scheduled to visit the destination [31] Question: Start of 2025 and Expense Shifts - The company is off to a better start for 2025 compared to 2024, with higher occupancy and pricing [37] - Some one-time cost savings, including pension credits, contributed to the improved cost guidance [38] Question: Cost Savings and Margin Opportunities - Cost savings were driven by hundreds of small items across the board, including crew travel savings, port savings, and sourcing savings [40] Question: Streamlining the Portfolio - The company is open to further streamlining the portfolio but feels good about its current position heading into 2025 [42] Question: Cost Inflation and Dry-Dock Impact - Inflation remains a factor, but the company is working on cost-saving opportunities to offset it [45] - Dry-dock days are expected to increase by 17% in 2025, impacting year-over-year cost comparisons [21] Question: Middle East Conflict Impact - The company's business is not contingent on the Middle East, as it is not a major source market [48] Question: Dry-Dock Schedule and Half Moon Cay Development - Detailed dry-dock schedules for 2025 are available upon request [51] - Half Moon Cay will focus on enhancing its natural beauty, with no plans for a water park [52] Question: SEA Change Progress and Land-Based Leisure Demand - The company is ahead of schedule on SEA Change targets, with strong performance in yields and costs [55] - The company sees a remarkable value proposition compared to land-based alternatives, driving demand [58] Question: New-to-Cruise and Younger Demographics - New-to-cruise guests increased by 17% year-over-year, driven by better advertising and trade efforts [112] - The company is attracting younger demographics, with Carnival Cruise Line's average guest age at 41 [65] Question: Celebration Key Halo Effect - Celebration Key is already seeing a premium in bookings, with strong demand expected to increase once the destination opens [67] Question: Consumer Behavior and Trade-Down Dynamics - The company is not seeing any trade-down dynamics, with demand broad-based across all brands [73] Question: Chinese Consumer and Asia Pacific Market - The company is not pursuing the Chinese market at this time, focusing on other regions like Japan and Taiwan [77] Question: Occupancy and Yield Opportunities - There is still room for occupancy improvement, but the focus remains on driving price [84] Question: Fuel Costs and Shore Power - Fuel costs are not impacted by shore power, as it is included in port expenses [86] Question: Sister Ship Orders and Debt Tranches - The company has no plans to order additional ships before 2029, focusing on debt reduction instead [88] - Debt reduction efforts are focused on high-cost debt and managing maturity towers [91] Question: Competitor Encroachment in Galveston - The company is not concerned about competitor encroachment, as it represents a small part of the overall cruise market [94] Question: Fourth Quarter Yield and Demand Hiccups - The company expects strong demand to continue in Q4, with no significant changes to yield guidance [96] Question: Investor Day and Key Topics - The upcoming investor day will focus on progress on SEA Change, Celebration Key, and cost-saving opportunities [100] Question: Demand Drivers and Advertising Spend - The company is not relying on pent-up demand, with strong demand driven by better commercial execution [105] - Advertising spend is focused on both short-term and long-term bookings, with no immediate plans to reduce it [109] Question: New-to-Cruise Acceleration - New-to-cruise growth was driven by better advertising, trade efforts, and strong performance in Alaska [113]

For the quarter ended August 2024, Carnival (CCL) reported revenue of $7.9 billion, up 15.2% over the same period last year. EPS came in at $1.27, compared to $0.86 in the year-ago quarter.The reported revenue represents a surprise of +1.04% over the Zacks Consensus Estimate of $7.81 billion. With the consensus EPS estimate being $1.17, the EPS surprise was +8.55%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

The largest cruise line operator tops its earlier guidance and raises the bar.The coast is clear for Carnival (CCL -3.45%) (CUK -3.85%) investors who were holding out for fresh financials to kick off the new trading week. The world's largest cruise line operator delivered a solid report for its fiscal third-quarter results on Monday morning, topping expectations on both ends of the income statement.The strong performance isn't really a surprise. A record $8.3 billion in customer deposits at the end of May a ...

Revenue Growth - Passenger ticket revenues increased by $693 million, or 15%, to $5.2 billion in 2024 from $4.5 billion in 2023, driven by strong demand and higher ticket prices [117]. - Onboard and other revenues rose by $349 million, or 15%, to $2.7 billion in 2024 from $2.3 billion in 2023, attributed to higher onboard spending and increased occupancy [118]. - The NAA segment's passenger ticket revenues increased by $480 million, or 16%, to $3.4 billion in 2024 from $3.0 billion in 2023, supported by a 10% capacity increase in ALBDs [119]. - Passenger ticket revenues increased by $2.1 billion, or 19%, to $12.6 billion in 2024 from $10.6 billion in 2023, comprising 66% of total revenues [128]. - The Europe segment's passenger ticket revenues increased by $784 million, or 21%, to $4.5 billion in 2024 from $3.7 billion in 2023 [130]. Capacity and Occupancy - The company experienced a 6.2% capacity increase in ALBDs for the three months ended August 31, 2024, compared to the same period in 2023 [112]. - Occupancy percentage improved to 112% for the three months ended August 31, 2024, up from 109% in the same period of 2023 [111]. - The company reported a 2.9 percentage point increase in occupancy for passenger ticket revenues, contributing to revenue growth [117]. Operating Expenses and Income - Operating expenses increased by $1.1 billion, or 10%, to $11.8 billion in 2024 from $10.7 billion in 2023, driven by a 5.3% capacity increase in ALBDs [131]. - Consolidated operating income increased by $1.4 billion to $3.0 billion in 2024 from $1.6 billion in 2023 [136]. - The NAA segment's operating income increased by $781 million to $2.2 billion in 2024 from $1.5 billion in 2023 [136]. Financial Position and Cash Flow - The working capital deficit increased to $8.6 billion as of August 31, 2024, compared to $6.2 billion as of November 30, 2023 [140]. - Net cash flows from operating activities increased by $1.7 billion to $5.0 billion during the nine months ended August 31, 2024, compared to $3.4 billion for the same period in 2023 [141]. - Capital expenditures for the nine months ended August 31, 2024, were $4.0 billion, primarily for the delivery of new ships [142]. - As of August 31, 2024, the company had $4.5 billion in liquidity, including $1.5 billion in cash and cash equivalents and $3.0 billion in borrowings available under the Revolving Facility [145]. Debt and Financial Compliance - The company is in compliance with all applicable covenants under its debt agreements as of August 31, 2024 [146]. - 62% of the company's debt is at a fixed rate, with 23% in EUR fixed rate, 3% in floating rate, and 11% in EUR floating rate [149]. - There have been no off-balance sheet arrangements that could materially affect the company's consolidated financial statements [147]. - The company has not experienced any material changes in its exposure to market risks since the last reporting period [148]. Regulatory and Market Risks - The company is facing risks from geopolitical uncertainties, inflation, and climate change, which could adversely affect future financial results [102]. - The company anticipates a potential annual impact of approximately $200 million from a global minimum tax expected to take effect in 2026 [109]. - The EU ETS will impact the company starting January 1, 2024, with an estimated cost of approximately $50 million in 2024 [109]. Internal Controls and Legal Proceedings - There have been no changes in internal control over financial reporting that materially affected the company during the quarter ended August 31, 2024 [151]. - The company's disclosure controls and procedures have been evaluated and deemed effective as of August 31, 2024 [150]. - Legal proceedings related to regulatory inquiries and investigations are referenced in the company's consolidated financial statements [153]. Interest Expense - Interest expense decreased by $248 million, or 16%, to $1.4 billion in 2024 from $1.6 billion in 2023 due to a decrease in total debt and lower average interest rates [137].

Carnival (CCL) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.55%. A quarter ago, it was expected that this cruise operator would post a loss of $0.01 per share when it actually produced earnings of $0.11, delivering a surprise of 1,200%.Over the last four quarters, the company has ...

Financial Performance - Third quarter net income was $1.7 billion, a 60% increase compared to 2023, and adjusted net income outperformed June guidance by $170 million[2] - Record operating income of $2.2 billion exceeded 2023 levels by $554 million, a 34% increase[4] - Net income for Q3 2024 reached $1.735 billion, significantly higher than $1.074 billion in Q3 2023, a 61.5% growth[26] - Operating income for Q3 2024 was $2.178 billion, compared to $1.624 billion in Q3 2023, a 34.1% rise[26] - Net income increased from $1.074 billion in August 2023 to $1.735 billion in August 2024[31] - Adjusted EBITDA increased from $2.221 billion in August 2023 to $2.822 billion in August 2024[31] Revenue Growth - Third quarter revenues reached an all-time high of $7.9 billion, up $1.0 billion compared to the prior year[2] - Passenger ticket revenue increased to $5.239 billion in Q3 2024, up from $4.546 billion in Q3 2023, representing a 15.2% growth[26] - Onboard and other revenue rose to $2.657 billion in Q3 2024, compared to $2.308 billion in Q3 2023, a 15.1% increase[26] - Total revenues for the nine months ended August 31, 2024, were $19.083 billion, up from $16.197 billion in the same period in 2023, a 17.8% increase[26] Cost Management - Adjusted cruise costs excluding fuel per ALBD (in constant currency) decreased compared to 2023 and were significantly better than June guidance[4] - Adjusted cruise costs per ALBD for the three months ended August 31, 2024, were $124.44, a 0.2% increase compared to the same period in 2023[36] - Adjusted cruise costs excluding fuel per ALBD for the three months ended August 31, 2024, were $103.97, a 0.4% decrease compared to the same period in 2023[36] - Adjusted cruise costs for the nine months ended August 31, 2024, were $9,430 million, compared to $8,817 million in the same period in 2023[36] - Adjusted cruise costs per ALBD for the nine months ended August 31, 2024, were $131.56, a 1.6% increase compared to the same period in 2023[36] - Adjusted cruise costs excluding fuel per ALBD for the nine months ended August 31, 2024, were $110.00, a 2.2% increase compared to the same period in 2023[36] Debt and Liquidity - The company prepaid $625 million of debt in Q3 2024, bringing total prepayments to $7.3 billion since the beginning of 2023[9] - Cash and cash equivalents decreased to $1.522 billion as of August 31, 2024, from $2.415 billion as of November 30, 2023[27] - Long-term debt reduced to $26.642 billion as of August 31, 2024, from $28.483 billion as of November 30, 2023[27] - Liquidity decreased from $5.392 billion in November 2023 to $4.519 billion in August 2024[28] - Debt decreased from $30.572 billion in November 2023 to $28.856 billion in August 2024[28] - Cash from operations decreased from $1.834 billion in August 2023 to $1.205 billion in August 2024[32] Customer Deposits and Bookings - Total customer deposits reached a third quarter record of $6.8 billion, surpassing the previous third quarter record of $6.3 billion as of August 31, 2023[4] - Customer deposits increased to $6.436 billion as of August 31, 2024, up from $6.072 billion as of November 30, 2023[27] - Cumulative advanced bookings for full year 2025 are above the previous 2024 record with prices (in constant currency) ahead of prior year[6] Operational Metrics - Passenger cruise days (PCDs) increased from 25.8 million in August 2023 to 28.1 million in August 2024[29] - Occupancy percentage increased from 109% in August 2023 to 112% in August 2024[29] - Passengers carried increased from 3.6 million in August 2023 to 3.9 million in August 2024[29] - ALBDs (Available Lower Berth Days) for the three months ended August 31, 2024, were 25.2 million, compared to 23.7 million in the same period in 2023[36] - ALBDs for the nine months ended August 31, 2024, were 71.7 million, compared to 68.1 million in the same period in 2023[36] Earnings and Margins - Earnings per share (diluted) for Q3 2024 were $1.26, up from $0.79 in Q3 2023, a 59.5% increase[26] - Gross margin per diems increased by 16% from $90.45 in August 2023 to $104.49 in August 2024[34] - Net yields increased by 8.7% from $215.22 in August 2023 to $233.87 in August 2024[34] Fuel Expenses - Fuel expenses rose to $515 million in Q3 2024, compared to $468 million in Q3 2023, a 10% increase[26] Non-GAAP Financial Measures - Adjusted EBITDA for full year 2024 is expected to be approximately $6.0 billion, up over 40% compared to 2023 and better than June guidance by nearly $200 million[2][7] - Adjusted return on invested capital ("ROIC") for full year 2024 is expected to be approximately 10.5%, an improvement of approximately 5.0 percentage points compared to 2023[7] - Adjusted free cash flow for 2024 is expected to be over $3.0 billion[9] - The company uses non-GAAP financial measures such as adjusted net income, adjusted EBITDA, and adjusted free cash flow to assess performance and liquidity[37] - Constant currency reporting removes the impact of exchange rate changes to provide a comparative view of business performance[45] Cruise and Tour Operating Expenses - Cruise and tour operating expenses for the three months ended August 31, 2024, were $4,303 million, compared to $3,921 million in the same period in 2023[36]

The largest cruise line operator has a big earnings report to announce before the next opening bell.This may be the lull before earnings season starts up in earnest in a few weeks, but that doesn't mean that there's a moratorium on financial updates. Carnival (CCL 0.80%) (CUK 0.88%) reports its fiscal third-quarter results before the market opens on Monday.The final trading day of the month -- and quarter -- won't be sleepy. Carnival's report covers the months of June, July, and August. This is the peak tra ...