Carnival (CCL) Gears Up for Q4 Earnings: What's in Store?
Carnival Corporation CCL is scheduled to report its fourth-quarter fiscal 2023 results on Dec 21, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 17.8%.
How Are Estimates Placed?
The Zacks Consensus Estimate for fiscal fourth-quarter bottom line is pegged at a loss of 13 cents. In the prior-year quarter, CCL reported a loss per share of 85 cents.
For revenues, the consensus mark is pegged at $5.32 billion. The metric suggests an increase of 38.5% from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Carnival is anticipated to show year-over-year growth in its fiscal fourth-quarter revenues, driven by enhancements in booking trends and a strong pricing landscape. The company's performance in the quarter is expected to have benefited from increased demand, supported by new marketing initiatives, as well as higher onboard spending facilitated by bundled package deals and pre-cruise sales.
Our model estimates fiscal fourth-quarter passenger ticket revenues to rise 47.6% year over year to $3,350.1 million. We expect onboard and other revenues to increase 19.5% year over year to $1,8761 million.
For the fourth quarter of fiscal 2023, the company expects adjusted EBITDA in the range of $800-$900 million. It expects fiscal fourth-quarter adjusted net income to be between ($225) million and ($125) million. Occupancy during the quarter is estimated to be more than 101%. It expects a fiscal fourth-quarter adjusted loss per share to be between 18 cents and 10 cents.
Carnival Corporation Price and EPS Surprise
Carnival Corporation price-eps-surprise | Carnival Corporation Quote
However, high costs are likely to have hurt the company’s bottom line. For fiscal 2023, it anticipates adjusted cruise costs to remain elevated sequentially, buoyed by a rise in occupancy levels and dry-dock-related expenses. Per our model, total operating expenses in 2023 are expected to have risen 24% year over year to $14.6 billion.
What the Zacks Model Unveils
Our proven model doesn’t conclusively 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Carnival has an Earnings ESP of -0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank #3.
Stocks Poised to Beat Earnings
Royal Caribbean Cruises Ltd. RCL has an Earnings ESP of +0.39% and a Zacks Rank #1.
Shares of Royal Caribbean have surged 135.3% in the past year. RCL’s earnings beat the consensus mark in all the trailing four quarters, the average surprise being 28.3%.
Live Nation Entertainment, Inc. LYV has an Earnings ESP of +0.98% and a Zacks Rank #1.
Shares of Live Nation have gained 36.4% in the past year. LYV’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 37.5%.
Cedar Fair, L.P. FUN has an Earnings ESP of +47.83% and a Zacks Rank #3.
Shares of Cedar Fair have declined 0.2% in the past year. FUN’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average being 67.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Carnival Corporation (CCL) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Live Nation Entertainment, Inc. (LYV) : Free Stock Analysis Report
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
