Carnival (CCL) First Quarter Earnings and Revenue Lag Estimates, Year-over-Year Increase

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Carnival Corporation & plc CCL released results for the first quarter of fiscal 2022 (ended Feb. 28, 2022), with earnings and revenue falling short of Zacks’ consensus estimate. Both metrics lagged the consensus mark for the sixth consecutive quarter. However, the top and bottom lines have improved year over year.

In the quarter under review, the company reported a loss per share of $1.65, higher than Zacks’ consensus estimate of a loss of $1.23. In the prior year quarter, the company posted a loss per share of $1.79.

Revenue for the quarter totaled $1,623 million, which was below the consensus mark of $2,331 million. However, revenue improved significantly from the $26 million figure in the prior year quarter. Revenue from passenger and onboard tickets and other was $873 million and $750 million, respectively.

Carnival’s President, CEO and Chief Climate Officer, Arnold Donald, said: “Despite the impact of Omicron, the number of passengers carried increased nearly 20% in the first quarter compared to the prior quarter, while increasing simultaneously revenue per cruise day and driving improvement. in adjusted EBITDA. We expect monthly Adjusted EBITDA to turn positive by the start of our summer season as we increase occupancy and return more vessels to service.

1st quarter financials

In the first fiscal quarter, the company reported an adjusted net loss of $1.9 billion. GAAP net loss for the quarter was $1.9 billion.

In the first quarter of 2022, the occupancy rate was 54%, reflecting a 20% increase in the number of customers transported in the previous quarter. Lower Available Berthage Days (“ALBD”) for the quarter was 13 million, representing 60% of total fleet capacity, compared to 47% in the fourth quarter of 2021.

For the cruise segments, revenue per PCD for the first quarter of 2022 increased by almost 7.5% compared to a robust 2019.

Carnival Corporation Pricing, Consensus, and EPS Surprise

Carnival Corporation price-consensus-eps-surprise-chart | Quote from Carnival Corporation

Balance sheet

Cash, cash equivalents and short-term investments as of February 28, 2022 were $6.9 billion, compared to $9.1 billion in the prior quarter. Carnival ended the quarter with cash of $7.2 billion. Total debt (current and long-term) as of February 28, 2022 was $34.9 billion, compared to $33.2 billion as of November 30, 2021.

Update reservations

During the first quarter of 2022, the company improved its booking position for the second half of 2022. Cumulative advance bookings for the second half of 2022 are at the lower end of the historical range. The company said cumulative early bookings for the first half of 2023 are at the upper end of historical ranges and at higher prices than 2019 levels.

Meanwhile, total customer deposits as of February 28 were $3.7 billion, compared to $3.5 billion as of November 30, 2021.

recovery plan

As of March 22, 75% of the company’s capacity had resumed guest cruise operations. The company plans to return each brand’s full fleet to guest cruise operations for its respective summer season.

Advice

The company continues to expect to report a net loss for the second quarter and full year 2022. However, it expects to report a profit in the third quarter of fiscal 2022.

Zacks Ranking and Stocks to Consider

Currently, Carnival carries a Zacks rank #4 (sell).

Some top-ranked stocks in the Zacks Consumer Discretionary sector are Cedar Fair, LP AMUSING, RCI Hospitality Holdings, Inc. Rick and Bluegreen Vacations Holding Corporation BVH. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cedar Fair wears a Zacks Rank #2 (Buy). The company has a surprise on earnings for the last four quarters of 16.3% on average. Cedar Fair shares are up 16.9% over the past year.

The Zacks consensus estimate for FUN’s sales and EPS in 2022 indicates an increase of 33.8% and 612.7%, respectively, from prior year period levels.

RCI Hospitality has a No. 2 Zacks rank. The company has a trailing four-quarter earnings surprise of 63.2% on average. RCI Hospitality shares have gained 7.1% over the past year.

Zacks’ consensus estimate for RICK’s 2022 sales and EPS suggests growth of 33.9% and 19.6%, respectively, from prior year period levels.

Bluegreen Vacations carries a No. 2 Zacks rank. The company has a trailing four-quarter earnings surprise of 425.1% on average. Shares of Bluegreen Vacations are up 60.5% over the past year.

Zacks’ consensus estimate for BVH’s 2022 sales and EPS suggests growth of 8.3% and 20.8%, respectively, from prior-year period levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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