Carnival Stock Slips After Record-Setting Quarter Offset by Weak Outlook

Carnival Corporation (CCL) reported record-setting operating results and boosted its full-year guidance for a third time as ticket and other sales jumped. However, shares slipped Monday morning as the cruise operator predicted net yields that were below estimates. 

The company reported third-quarter earnings per share (EPS) of $1.26, with revenue up 15% year-over-year to $7.90 billion. Both were above consensus forecasts of analysts polled by Visible Alpha.

Carnival set all-time highs for operating income and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Operating income soared 34% to $2.18 billion, and adjusted EBITDA rose 27% to $2.82 billion.

Passenger ticket revenue climbed 15% to $5.24 billion, and onboard and other revenue increased 15% to $2.66 billion. 

CEO Says Results Led by ‘High-Margin, Same-Ship Yield Growth’

Chief Executive Officer (CEO) Josh Weinstein said the results were driven by “high-margin, same-ship yield growth.”

Carnival anticipates net yields growing by approximately 5.0% in constant currency in the fourth quarter and by about 10.4% for the full year. Analysts surveyed by Visible Alpha were looking for 5.76% and 10.52%, respectively. Net yield measures revenue per available passenger cruise day, after deducting expenses like airfare, commissions, and other direct costs.

Carnival expects 2024 adjusted EBITDA of about $6.0 billion, up from its previous outlook of $5.8 billion. 

Shares of Carnival, which were flat on the year through Friday, slipped more than 1% in morning trading.