Shares of Carnival Corp. (NYSE:CCL) gained about 9% in yesterday’s trading session after the company reported strong results in the second quarter of Fiscal 2024. The company benefited from higher onboard spending by cruise passengers and a rise in ticket prices. Buoyed by strong Q2 results and upbeat travel demand, Carnival raised its full-year guidance.
Carnival is a global cruise company that operates a portfolio of brands (for a thorough assessment of CCL stock, go to TipRanks’ Stock Analysis page).
CCL: Q2 Highlights
Carnival posted adjusted earnings of $0.11 per share, which beat the consensus estimate of a loss of $0.01. Further, it compared favorably with a loss of $0.31 in the year-ago quarter. Similarly, the company’s revenue jumped about 18% year-over-year to $5.8 billion and exceeded the Street’s estimate of $5.68 billion.
The improved results were driven by strong travel demand and increased ticket pricing for CCL, with total customer deposits reaching a record $8.3 billion. Furthermore, cruise costs per available lower berth day (ALBD) increased by 4% year-over-year, much slower than the prior quarter’s 7.9%.
Fiscal Q3 and 2024 Outlook
For the fiscal third quarter, the company expects adjusted EPS of $1.15, versus the analysts’ expectations of $1.11 per share. Also, CCL anticipates that capacity will grow by 6.2% year-over-year.
For the full Fiscal year 2024, Carnival significantly raised its adjusted EPS outlook to $1.18 from the prior guidance of $0.98 per share.
Analysts Weigh In
Following the release of Q2 earnings, three analysts rated CCL stock a Buy. Among the bullish analysts, Daniel Politzer from Wells Fargo (WFC) raised the price target on Carnival stock to $24 (34.7% upside potential) from $23.
Another analyst, Matthew Boss from J.P. Morgan (JPM), raised the price target to $23 (29.1% upside) from $21.
Is CCL a Good Stock to Buy Now?
Currently, Carnival has a Strong Buy consensus rating based on 14 Buy, one Hold, and one Sell recommendations. The analysts’ average price target on CCL stock of $21.63 per share implies 21.38% upside potential. Shares of the company have gained 4.6% over the past six months.
