Carnival (CCL) reported third quarter results that topped Wall Street expectations on both the top and bottom lines. The company also issued upbeat Q4 and full-year guidance.
In the video above, Morning Brief anchors Seana Smith and Madison Mills recap the cruise operator’s results.
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This post was written by Stephanie Mikulich.
Shares of carnival here just crossing the print.
As you can see taking a look at the stocks reaction up just about 1.4% here ahead of the bell.
When you take a look at the fact that some of this guidance here carnival reporting third quarter eps coming in above the streets expectations on an adjusted basis.
A dollar 27 that beat the streets estimate of a dollar 16, taking a look at sales coming in at 7.9 billion.
That was slightly ahead of what the street was looking for at 7.8 billion.
Taking a look at the guidance.
We know that that has really been what has been moving these stocks on the heels of the print essentially coming in in line with expectations at least for the fourth quarter on adjusted ebita basis there.
You can see their full year 2024.
They say net yields up just about 10.4% compared last year.
So of course, we take a look at this and try to lean what exactly this tells us about the consumer whether or not people are willing to spend on travel right now.
More that consumer discretionary component component.
But again, carnival beating on both the top and bottom line also initiating some of their full year uh 2024 outlook raising that there.
So obviously the ST the street taking that in stride as a, as a, as a bit of good news here and a result, ma you’re looking at shares up just about 1.5%.
Yeah, just taking a look at the earnings statement here.
It’s interesting that the CEO talking about how they are poised to deliver record operating performance for four year 2024 they’re also expecting continued momentum.
It’s not just for 2024 here saying quote, looking forward, the momentum continues as our enhanced commercial execution drives demand.
Well, in excess of our growth, that was a key question heading into this call, whether we were going to see that demand, not just meeting expectations but really soaring above them because we’ve sort of gotten used to a lot of the cruise lines having good performance, but carnival, not so much you can see here on your screen that’s just about flat over the last three months.
We are seeing the stock moving to the upside on the heels of this earnings print was initially up about 3% as this earnings print crossed.
Now you’re seeing those gains about 1.5%.
Uh, interesting to see also that the cruise costs were up about 8% compared to the fourth quarter of 2023.
They say that’s due to a higher dry dock days.
But I think given the deflationary pressure we’ve seen in the broader commodity space, that could also be a potential positive catalyst for a name like carnival that has a lot of exposure to the energy sector.
One of the things that sticking out to me within this report is their Ceo Weinstein, who’s actually going to be on Yahoo finance market domination later on this afternoon, talking about where they are seeing some of that strength.
And he’s saying that our strong improvements were led by high margin, same ship yield growth, driving a 26% improvement in the unit operating income there.
That was the highest level that they had reached in 15 years.
So that really speaks to some of the strength that they’re seeing within the uh within their industry, within their company at this point.
