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Carnival shares slip despite record Q3 results and raised guidance

Published 30/09/2024, 11:56 pm
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CCL
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Carnival Corporation (NYSE: NYSE:CCL) reported record third-quarter operating results on Monday, beating analyst expectations and raising its full-year guidance for the third time this year. However, shares fell over 2% in early trading, suggesting investors may have been hoping for even stronger performance or guidance.

The cruise operator posted adjusted earnings per share of $1.27 for the quarter, surpassing the analyst consensus of $1.17. Revenue hit an all-time high of $7.89 billion, slightly above estimates of $7.82 billion and up $1.0 billion YoY.

Net income for Q3 reached $1.7 billion, a 60% increase compared to the same period last year. The company reported record operating income of $2.2 billion, exceeding 2023 levels by $554 million.

Carnival raised its full-year 2024 adjusted EBITDA guidance to approximately $6.0 billion, up over 40% compared to 2023 and about $200 million higher than its previous forecast. The company now expects net yields in constant currency to increase by approximately 10.4% for the full year compared to 2023.

"We delivered a phenomenal third quarter, breaking operational records and outperforming across the board," said Carnival Corporation & plc's Chief Executive Officer Josh Weinstein. "We are poised to deliver record operating performance for full year 2024."

Looking ahead, Carnival reported strong booking momentum for 2025, with cumulative advanced bookings above the previous 2024 record and prices in constant currency ahead of the prior year.

"With nearly half of 2025 booked and less inventory remaining for sale than the prior year, we are leveraging strong demand to achieve record ticket pricing (in constant currency)," added Weinstein.

Despite the positive results and outlook, Carnival's stock dipped over 2% following the announcement.

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