Carnival Stock and Earning Expectations in Q4

Carnival Stock

Carnival stock was trading at $7.55 as of 11:03 AM EDT.

Press release from Carnival (NYSE:CCL): Missing by $0.51 on Q3 GAAP EPS of $0.65.

$4.31B (+688.5% Y/Y) in revenue falls short by $600 million. At 2:00 PM, shares were trading up +2%. Cumulative advance reservations for the entire year 2023 are much more expensive than 2019 sailings, normalized for FCCs, and are somewhat over the historical average.

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Carnival Earnings 

The company anticipates a fourth-quarter adjusted EBITDA for the period ending November 30, 2022, to be breakeven to slightly negative. The company expects positive adjusted EBITDA for the second half of 2022 despite the seasonality of its business and the rising investment in advertising to drive yields in 2023 after achieving over $300 million in adjusted EBITDA in the third quarter. Additionally, the business anticipates an increase in adjusted EBITDA and occupancy on an annual basis, with occupancy reaching historical levels in 2023.

“Since announcing the loosening of our protocols last month, booking traffic has significantly increased, and we are currently running well ahead of robust 2019 levels. With increased efforts to create demand, we anticipate further building on this momentum. While utilizing near-term strategies to quickly capture price and bookings in the interim, we are focused on generating significant revenue growth over the long run,” the CEO remarked.

Carnival Stock Outlook

The cruise operator’s total advance reservations for the current quarter are smaller than average and cost less money. Carnival (NYSE:CCL)already predicted a loss for the year due to the additional difficulties brought on by Moscow’s invasion of Ukraine. According to IBES statistics from Refinitiv, the cruise operator’s revenue for the third quarter ended August 31 increased to $4.31 billion from $546 million a year earlier but fell short of analysts’ average estimates of $4.90 billion. However, the net loss decreased from $2.84 billion, or $2.50 per share, a year earlier to $770 million, or 65 cents per share.

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