Carnival (CCL, Financial) saw its stock rise by 2.5% after releasing its Q1 (February) earnings report, showcasing a smaller-than-anticipated loss. The company's revenue surged by 22% year-over-year to $5.41 billion, aligning with expectations. For Q2, Carnival anticipates an adjusted loss of $(0.03), which meets forecasts. Additionally, the company has uplifted its FY24 EPS outlook, though this adjustment mirrors the Q1 performance, rendering it somewhat neutral.
Key financial highlights include:
- Adjusted EBITDA reached $871 million in Q4, surpassing the expected $800 million and more than doubling the previous year's $382 million. Projections for Q2 (May) stand at approximately $1.05 billion, with FY24 estimates around $5.63 billion.
- Carnival celebrated a stellar start to FY24, exceeding guidance across all metrics during an exceptionally successful wave season, which saw record-high booking volumes at significantly increased prices.
- The company reported an early and robust wave season, leading to record booking volumes for all future sailings, surpassing expectations with considerably higher prices (in constant currency) than the previous year. This comes as Carnival entered 2024 with a smaller inventory available for sale, in line with its strategy to advance the booking curve.
- Despite a reduced inventory for the year's remainder, booking volumes reached an all-time high, driven by strong demand for 2025 sailings and beyond. Carnival's booked position for the rest of the year is the best on record, with both pricing and occupancy rates significantly higher than in 2023.
This quarter marks a significant improvement for Carnival, continuing a streak of EPS growth over the past six quarters, following a series of five consecutive EPS misses. A standout aspect of the report was Carnival's record-setting booked position for the remainder of the year, achieved despite higher pricing.
