Carnival (CCL) to Report Q3 Earnings: What's in the Cards?
Carnival Corporation & plc CCL 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Marriott International, Inc. MAR has an Earnings ESP of +1.83% and a Zacks Rank #3.
Shares of Marriott have gained 41.6% in the past year. MAR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 5.5%.
Boyd Gaming Corporation BYD has an Earnings ESP of +1.74% and a Zacks Rank #3.
Shares of Boyd Gaming have gained 30.7% in the past year. BYD’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 12.2%.
Caesars Entertainment, Inc. CZR has an Earnings ESP of +67.78% and a Zacks Rank #3.
Shares of Caesars Entertainment have increased 36.6% in the past year. CZR’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 74.3%.
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Carnival Corporation (CCL) : Free Stock Analysis Report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
