Carnival To Report Q1 Earnings: What's In The Cards?

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Carnival Corporation & plc (CCL - Free Report) is scheduled to report its first-quarter fiscal 2023 results on Mar 27, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.5%.

How are Estimates Placed?

The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of 62 cents per share, indicating an improvement of 62.4% from a loss of $1.65 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $4,353 million. The metric suggests an increase of 168.2% from the year-ago quarter’s figure.

Carnival Corporation Price and EPS Surprise

Carnival Corporation Price and EPS Surprise

Carnival Corporation price-eps-surprise | Carnival Corporation Quote

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Carnival’s fiscal first-quarter performance is likely to have benefited from strong demand for cruising, relaxation in COVID-related protocols, acceleration in booking volumes, and better alignment of land-based vacation alternatives. During the fiscal fourth quarter, the company stated that North American and Australian segment's 2023 booking volumes are above 2019 levels. The company stated that its 2023 cumulative advanced booked position is above the historical ranges and at increased prices compared with 2019 levels. Total customer deposits as of Nov 30 were $5.1 billion compared with $4.8 billion reported in the previous quarter. Given the focus on strategic deployments (closer to guests’ home itineraries) and shorter-duration cruises, the momentum is likely to have continued in the to-be-reported quarter.

Increased revenues from its onboard and passenger tickets are likely to have driven the fiscal first-quarter top line. The Zacks Consensus Estimate for passenger ticket revenues and onboard and other revenues is currently pegged at $2,823 million and $1,523 million compared with $873 million and $750 million, respectively, reported in the prior-year quarter.

However, inflationary pressures are likely to have dented the company’s margins in the to-be-reported quarter. The 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 to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not predict 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. But that's not the case here.

Earnings ESP: Carnival has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #4 (Sell).

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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