Carnival’s Earnings Preview: A Voyage Towards Profitability Amidst Industry Resurgence
Cruise ship company Carnival (NYSE:CCL) will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Last Quarter Performance and Expectations for Tomorrow
Last quarter Carnival reported revenues of $5.40 billion, up 40.6% year on year, beating analyst revenue expectations by 2.3%. It was an impressive quarter for the company, with a decent beat of analysts’ earnings estimates. On the other hand, its number of passenger cruise days unfortunately missed.
This quarter analysts are expecting Carnival’s revenue to grow 21.9% year on year to $5.40 billion, slowing down from the 173% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
Industry Context and Peer Comparison
Looking at Carnival’s peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Scholastic reported revenue decline of 0.4% year on year, missing analyst estimates by 1.7%. Nike traded down 7% on the results, and Scholastic was up 1.7%.
Investor Sentiment and Market Reaction
Investors in the consumer discretionary segment have had steady hands going into the earnings, with the stocks up on average 1.8% over the last month. Carnival is up 17.2% during the same time, and is heading into the earnings with analyst price target of $27.5, compared to share price of $17.3.
Forward-Looking Statements
As the cruise industry continues to navigate the post-pandemic world, Carnival’s upcoming earnings report will be a significant indicator of its recovery and future prospects. With the company raising its annual profit forecast and anticipating a record year of bookings, it stands at the helm of an industry showing strong signs of resurgence. The question remains: Can Carnival maintain its momentum and steer towards profitability amidst a sea of challenges and opportunities?