Market News

Carnival Posts Disappointing Q1 Results

Cruise operating company Carnival Corporation & plc (NYSE: CCL) recently reported weaker-than-expected results for the first quarter ended February 28, 2022, as the company missed both top and bottom-line estimates.

Despite this, shares of CCL remained almost static on Tuesday and declined marginally to close at $18.92.

Revenue & Earnings

Carnival reported quarterly revenues of $1.62 billion, up over 6100% from the same quarter last year. The figure, however, failed to surpass the consensus estimate of $2.32 billion. While revenues from the passenger ticket segment jumped to $873 million in the first quarter from $3 million a year ago, revenues from onboard and other segments rose from $23 million last year to $750 million. These two components drove the overall growth in revenues.

The company’s loss per share for the quarter stood at $1.66, narrower than the previous year’s figure of a loss of $1.80 per share but wider than the consensus estimate of a loss of $0.90 per share.

Carnival’s occupancy for the quarter marked an improvement from the previous year’s figure of 16% to 54% in the current year.

Further, passenger cruise days increased from 27,000 in the prior year to 7.2 million.

Management Commentary

The CEO of Carnival, Arnold Donald, said, “Despite the impact of Omicron, guests carried grew by nearly 20 percent in the first quarter compared to the prior quarter, while simultaneously increasing revenue per passenger cruise day and driving an improvement in adjusted EBITDA. We expect monthly adjusted EBITDA to turn positive by the beginning of our summer season as we build occupancy and return more ships to service.”

Stock Rating

Consensus among analysts is a Hold based on one Buy, three Holds and one Sell. The average Carnival price target of $23.67 implies upside potential of 25% from current levels. Shares have declined 25.3% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Carnival’s performance this quarter.

According to the tool, the Carnival website recorded an 8.35% monthly rise in global visits in February, compared to the same period last year. Further, the footfall on Carnival’s website has increased 15.62% year-to-date, compared to the previous year.

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