Photo by Alexander Grey on Unsplash
 

Carnival Corporation (CCL - Free Report) is scheduled to report second-quarter fiscal 2023 results on June 26. In the last reported quarter, the stock delivered a negative earnings surprise of 11.3%.
 

Q2 Estimates

The Zacks Consensus Estimate for the fiscal second quarter is pegged at a loss of 35 cents per share compared with a loss of $1.64 reported in the year-ago quarter.

The consensus estimate for revenues is pegged at $4.79 billion. In the prior-year quarter, the company reported revenues of $2.4 billion.
 

Factors to Note

Carnival’s fiscal second-quarter performance is likely to have benefited from strong demand for cruising, acceleration in booking volumes, bundled package offerings, and pre-cruise sales. Management stated that its 2023 cumulative advanced booked position is at increased prices compared with 2019 levels.

Increased revenues from its onboard and passenger tickets are likely to have driven the fiscal second-quarter top line. Our model predicts passenger ticket revenues, and onboard and other revenues to increase 150.7% and 39.5% year over year to $3,221.6 million and $1,557.3 million, respectively.

However, inflationary pressures are likely to have dented CCL’s margins in the to-be-reported quarter. Russia’s invasion of Ukraine and its resulting impacts including supply-chain disruptions, increased fuel prices, and international sanctions are likely to have affected the company’s operations in the quarter under review.
 

Carnival Corporation Price and EPS Surprise

(Click on image to enlarge)

Carnival Corporation price-eps-surprise | Carnival Corporation Quote
 

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Carnival this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Carnival has an Earnings ESP of +3.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Carnival has a Zacks Rank #3.

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