Carnival Corporation (CCL - Free Report) is scheduled to report its third-quarter fiscal 2023 results on Sep. 29, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 6.1%.
 

How are Estimates Placed?

The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) is pegged at 75 cents. In the prior-year quarter, CCL reported a loss per share of 58 cents.

For revenues, the consensus mark is pegged at approximately $6.7 billion. The metric suggests an increase of 55.8% from the year-ago quarter’s figure.
 

Carnival Corporation Price and Consensus

Carnival Corporation price-consensus-chart | Carnival Corporation Quote

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

Factors to Note

Carnival’s fiscal third-quarter top line is expected to have increased year over year on the back of improvements in booking activities, a strong pricing environment, and capacity-generation initiatives. Robust demand (backed by new marketing campaigns) and elevated onboard spending (through bundled package offerings and pre-cruise sales) are likely to have aided the company’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter passenger ticket revenues and onboard and other revenues is currently pegged at $4,467 million and $2,205 million, respectively, indicating growth from the prior-year quarter’s reported figures of $2,595 million and $1,711 million.

Our model estimates third-quarter passenger ticket revenues to rise 68.3% year over year to $4,367.8 million. We expect onboard and other revenues to rise 27.7% year over year to $2,185.2 million.

Higher cruise ticket prices and the close-in of the occupancy gap (compared with 2019 levels) are likely to have aided the company’s performance in the to-be-reported quarter. For the third quarter of fiscal 2023, the company expects adjusted EBITDA to be between $2,050 million and $2,150 million.

Slower than expected ramp-down in inflationary pressures in port cost, freight, crew travel, and crew compensation are likely to have impacted the company’s margins in the to-be-reported quarter.

For third-quarter fiscal 2023, the company anticipates adjusted cruise costs to increase in the range of 12.5-13.5% from 2019 levels. Per our model, total operating expenses in the fiscal third quarter are anticipated to rise 6.7% year over year to $4,891.9 million.
 

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 -2.46%. 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 #3.

More By This Author:

These 3 Stocks Have Annualized +15% Returns Over The Last Decade
Time To Buy Or Stay Clear Of General Motors And Ford Stock As UAW Strike Continues?
Markets Break Losing Streak; Bond Yields Rise, Too