Carnival Corporation stock rises on Q1 earnings beat

Yahoo Finance Live’s Julie Hyman breaks down the rise in stock for Carnival Corporation following first-quarter earnings.

Video Transcript

JULIE HYMAN: We are also going to keep an eye on Carnival Cruise Lines. That's because the company came out with its numbers. The cruise giant reporting earnings for the first quarter, and the shares are trading 3%-- up 3% on the back of that. It looks like that the losses coming in more narrow than expected, a loss per share of $0.55. $0.60 is what analysts had been predicting here. And revenue coming in at $4.43 billion. That is also above what analysts had been anticipating here.

So I'm just looking at some of the other metrics here. Occupancy at 91% at this point as they carried 2.7 million passengers in the quarter.

BRAD SMITH: Yeah, and on that figure, the revenue in the first quarter, that represented about 95% of 2019 levels. Of course, that's a continued kind of marker that you get across the travel and accommodation space as they're either trying to return to full capacity or just make sure that they're bringing back in customers to re-reach or reestablish or just reassume some of those financial positions from back then, either on the profitability side or just more generally on the margin side.

For Carnival, that's meant they have to roll out re-engagement campaigns on the marketing side. That's meant that they have to figure out, all right, where do we also need to make more investments in our fleet? That's also been a continued kind of vessel portfolio look across that many of the different-- whether it's Carnival, whether it's Norwegian or Royal "Care-a-be-an", "Car-ibb-e-an," whatever-- however you're pronouncing them. Call them all looking across their fleets trying to figure out, all right, where do we kind of upscale this experience and, within that experience, ensuring that they're also seeing a higher ticket. And how they look at the ticket is essentially how much a customer is spending through their holistic trip while they're on that voyage.

JULIE HYMAN: Yeah, two of the things that stuck out to me from the release here-- one, the company CEO says there's no plans to sell equity to raise additional cash. And two, the strong performance extended into March. So still seeing strong trends.

You know, we were just talking with Joe Brusuelas about when the consumer might start to roll over. He was talking anecdotally about seeing very full airports across the country. So this is another anecdotal indicator that people are still out there spending on travel.

BRAD SMITH: They're out there ready to get on the high seas.


BRAD SMITH: Set sail.