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Carnival (CCL) Q4 Earnings & Revenues Lag Estimates, Rise Y/Y

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Carnival Corporation & plc CCL reported fourth-quarter fiscal 2021 (ended Nov 30, 2021) results, with earnings and revenues missing the Zacks Consensus Estimate. Nevertheless, the top and bottom line improved on a year-over-year basis.

In the quarter under review, the company reported a loss per share of $1.72, wider than the Zacks Consensus Estimate of a loss of $1.45. In the year-ago quarter, the company had reported a loss per share of $2.02.

Revenues during the quarter totaled $1.287 million, which missed the consensus mark of $1.494 million. Nevertheless, the top line improved sharply from the prior-year quarter’s figure of $34 million. Passenger ticket and onboard and other revenues were $674 million and $613 million, respectively.

Carnival Corporation Price and Consensus

Carnival Corporation Price and Consensus
Carnival Corporation Price and Consensus

Carnival Corporation price-consensus-chart | Carnival Corporation Quote

Q4 Financials

During the fiscal fourth quarter, the company reported an adjusted net loss of $2 billion at par with the previous quarter’s levels. GAAP net loss for the quarter amounted to $2.6 billion.

Carnival ended the quarter with liquidity of $9.4 billion. The company announced that it has enough liquidity to return to full operation. It further added that it will continue to pursue refinancing opportunities to lower interest expenses and extend maturities.

The average monthly cash burn in the third quarter totaled $510 million. The company informed that gradual resumption of business would continue to have a material impact on its liquidity, financial position and results of operations.

In fourth-quarter 2021, occupancy was 58.4% compared with 56% in the prior-year quarter. For December 2021, the company anticipates achieving occupancy levels of 90%.

Balance Sheet

Cash, cash equivalents and short-term investments as of Nov 30, 2021 were $9.1 billion, compared with $9.5 billion in the prior year period. Total debt (current and long-term) as of Nov 30, 2021 came in at $33.2 billion compared with $26.9 billion as of Nov 30, 2020.

Bookings Update

During the fourth quarter, booking volumes for all future cruises were higher than booking volumes during the third quarter of 2021. However, booking volumes in November were not as robust owing to concerns regarding the Omicron variant. The company stated that cumulative advanced bookings for the second half of 2022 and the first half of 2023 are at the higher end of historical ranges and at increased prices compared with 2019 levels.

Meanwhile, total customer deposits as of Nov 30, 2021, were $3.5 billion compared with $3.1 billion as of Aug 31, 2021.

Resumption Plan

As of Nov 30, the company had resumed operations at 61% of its capacity. It intends to have its full fleet back in operation in the spring of 2022.

Zacks Rank and Stocks to Consider

Currently, Carnival carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corp. BVH and Camping World Holdings, Inc. CWH.

Hilton Grand Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 48.7% so far this year.

The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 189.5% and 158.1%, respectively, from the year-ago period’s levels.

Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 146.2% so far this year.

The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels.

Camping World carries a Zacks Rank #2 (Buy). The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.

Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 47.5% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 80.1%, respectively, from the year-ago period’s levels.


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