Carnival Corporation & plc (CCL - Free Report) reported third-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The company stated that it benefits from solid booking trends backed by improved commercial execution and demand generation initiatives.

Earnings & Revenues

In the quarter under review, the company reported an adjusted earnings per share (EPS) of 86 cents, beating the Zacks Consensus Estimate of 73 cents. In the year-ago quarter, the company reported an adjusted loss per share of 58 cents.

Revenues in the quarter totaled $6,854 million, beating the consensus mark of $6,706 million. In the prior-year quarter, CCL reported revenues of $4,305 million. Passenger ticket and onboard and other revenues were $4,546 million and $2,308 million, respectively.

Carnival Corporation Price, Consensus and EPS Surprise

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

Q3 Financials

During the fiscal third quarter, the company reported a GAAP net income of $1,074 million against a loss of $770 million in the prior-year quarter. Adjusted net income in the quarter amounted to $1,176 million against ($688) million reported in the year-ago quarter.

Balance Sheet

As of Aug 31, 2023, cash and cash equivalents were $2,842 million compared with $4,468 million reported in the previous quarter. Carnival ended the quarter with liquidity of $5,730 million. Total debt (current and long-term) as of Aug 31, 2023, was $31.3 billion compared with $33.7 billion as of May 31, 2023.

Adjusted EBITDA, as of Aug 31, 2023, came in at 2,221 million compared with $303 million reported in the prior-year quarter.

Bookings Update

During the fiscal third quarter, the company reported solid bookings for the North America, Australia and Europe segments. The company stated booking to be 20% above 2019 levels. The company stated that its fiscal 2024 cumulative advanced booked position exceeds the upper bound of the historical range and at higher pricing.

Total customer deposits as of Aug 31 were $6.3 billion compared with $7.2 billion reported in the previous quarter. The amount was higher than $4.9 billion reported on Aug 31, 2019.

2023 Outlook

For the fourth quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $800 and $900 million. The company expects fiscal fourth-quarter adjusted net income to be between ($225) million and ($125) million. Occupancy during the quarter is estimated to be more than 101%. The company expects a fiscal fourth-quarter adjusted loss per share to be between 18 cents and 10 cents.

For fiscal 2023, the company anticipates adjusted EBITDA in the range of $4,100-$4,200 million compared with the previous expectation of $4,100-$4,250 million. Adjusted net income during the year is anticipated to be between ($150) million and ($50) million. In fiscal 2023, the company expects adjusted loss per share to be between 12 cents and 4 cents.

Zacks Rank and Stocks to Consider

Currently, Carnival carries a Zacks Rank #3 (Hold).

More By This Author: