Carnival Boosts Profit Forecast, Sees 'Record Demand'

Core Insights - The company reported record revenue and adjusted earnings per share for the third quarter, surpassing analyst expectations and raising its full-year earnings forecast for the third consecutive quarter [1] - There is a record pace for forward bookings and improving net yields, with North American and European brands showing a 4% year-over-year increase [2][3] - The company achieved a 13% return on invested capital (ROIC), the highest in 20 years, along with record operating income and EBITDA per unit [3] Financial Performance - The company maintained consistent guidance for the second half of the year despite experiencing volatility in the first half due to macroeconomic and geopolitical factors [5] - Projected yields for the fourth quarter are expected to exceed 4%, similar to the third quarter performance [5] Consumer Insights - The consumer base remains strong, with a consistent demand for the company's offerings, which are perceived as providing significant value compared to other vacation options [6][8] - Approximately one-third of guests are new to cruising, while the remainder consists of brand loyalists and repeat cruisers [14] Brand Performance - Carnival Cruise Line and Aida Cruises are the top-performing brands within the company's portfolio, with ongoing improvements across all brands [10][11] - Only about half of the brands have returned to their historical peak performance since before the pandemic pause in 2020, indicating potential for growth [12] Capacity and Growth Strategy - The company is not planning to introduce new ships next year, focusing instead on measured capacity growth with one new ship per year for the next several years [16] - The strategy emphasizes attracting both loyal customers and newcomers to fill existing capacity [17]