Carnival Corp. (NYSE:CCL) shares dipped more than 1% Wednesday after the company reported its latest quarterly earnings, topping profit and revenue expectations.
The cruise line company reported a Q1 loss per share of ($0.14), $0.03 better than the analyst estimate of a ($0.17) loss per share. Revenue for the quarter came in at $5.4 billion versus the consensus estimate of $5.33 billion.
CCL revealed it improved its first quarter bottom line by nearly $500 million compared to 2023, while adjusted net loss was better than December guidance, with continued strength in demand driving ticket prices higher
Furthermore, in the first quarter, booking volumes hit an all-time high, with prices "considerably higher."
"This has been a fantastic start to the year," said Carnival's CEO Josh Weinstein. "We delivered another strong quarter that outperformed guidance on every measure while concluding a monumental wave season that achieved all-time high booking volumes at considerably higher prices."
Looking ahead, CCL expects full-year net yields to be up approximately 9.5% compared to 2023, over a point better than the company's December guidance, based on continued strength in demand and with occupancy at historical levels. It also sees a full-year adjusted EBITDA of approximately $5.63 billion, which is better than its December guidance.
For Q2, net yields are expected to be up approximately 10.5%, while adjusted EBITDA is seen at approximately $1.05 billion.
Reacting to the results, analysts at Goldman Sachs said that in their conversations with investors, most were expecting either a reiteration or a slight raise to the guide, "given the Red Sea headwind in 2Q and higher fuel costs which have moved higher by ~HSD% since the guide was first
issued in December 2023, offset by a strong Wave season."
"As such, we think CCL broadly hit the key marks that investors were looking for," the firm said.