Despite reporting record Fiscal third-quarter revenue, Carnival Corp.’s (CCL) stock is down 3% after the cruise ship operator issued forward guidance that disappointed analysts and investors.
Miami, Florida-based Carnival reported earnings per share (EPS) of $1.27, which beat consensus forecasts that called for $1.17. Revenue in the quarter totaled a record $7.90 billion, which also beat Wall Street’s expectations of $7.82 billion.
Unfortunately, Carnival’s outlook for its net yield in the current quarter overshadowed what was otherwise a great print from the company. Management said they expect Fiscal fourth-quarter net yield to be up about 5%, which fell short of the consensus expectation of 5.8%. Still, Carnival raised its guidance for its entire Fiscal 2024 year, saying it anticipates net yield of 10.4%, up from a previous outlook of 10.25%.
Strong Cruise Bookings at Carnival
In releasing the company’s latest financial results, management at Carnival said that future bookings for its cruise ships remain strong, with nearly half of 2025 booked at record ticket prices. “Strong demand enabled us to increase our full-year yield guidance for the third time this year,” said CEO Josh Weinstein.
Carnival’s passenger ticket sales rose 15.2% to $5.34 billion in the company’s latest quarter, which topped consensus forecasts of $5.25 billion. Sales of items purchased onboard the company’s cruise ships, and “other revenue,” increased 15.1% to $2.66 billion, also topping expectations of $2.51 billion.
Carnival’s share price has declined 2.54% so far this year.
Is CCL Stock a Buy?
Carnival’s stock has a consensus Moderate Buy rating among seven Wall Street analysts. That rating is based on five Buy, one Hold, and one Sell recommendations made in the last three months. The average price target on CCL stock of $23 implies 27.28% upside potential from current levels.
