Carnival Corporation (NYSE:CCL) reports third-quarter results before the opening bell on September 29 and analysts expect the company to sail into calmer waters as bookings hit a record high and yields return to pre-pandemic levels.
The cruise operator has reported sequential record highs for bookings this year as demand for leisure travel returns. With its 2Q results in June, CEO Josh Weinstein said the company had reached a meaningful inflection point for revenue, with net yields surpassing 2019's strong levels. It also achieved positive operating income, cash from operations and adjusted free cash flow.
Carnival has already guided investors to expect adjusted underlying earnings (EBITDA) of $2.05 billion to $2.15 billion, a big improvement on the second quarter’s $681 million, and adjusted net income of $0.95 billion to $1.05 billion.
It also forecast occupancy of 107% or higher for the quarter.
According to Zacks Investment Research, analysts expect Carnival to post a 56% increase in revenue to $6.7 billion for the quarter and earnings per share of $0.75, up from a $0.58 loss a year ago.
Carnival’s shares traded 0.2% down at $13.88 in early Tuesday afternoon trade. They have climbed 74% so far in 2023.
Contact the author at stephen.gunnion@proactiveinvestors.com