Carnival Stock: All Eyes On Cash Flows
Update - June 27, 2023 The market originally sold off the cruise lines due to Carnival mentioning higher costs, yet the cruise line upped Adjusted EBITDA targets for the year. The market is acting a lot more rational here with Carnival up over 8%. -Q2 Non-GAAP EPS of -$0.31 beats by $0.02. -Revenue of $4.9B (+104.2% Y/Y) beats by $130M. -The company saw continued acceleration of demand, with total bookings made during the quarter reaching a new all-time high for all future sailings. Booking volumes for the second quarter exceeded the first quarter's booking volumes, which was the previous record high. -Q3 Outlook: Adjusted EBITDA of $2.05 billion to $2.15 billion, a significant improvement compared to the second quarter of 2023 and adjusted net income of $0.95 billion to $1.05 billion; Occupancy of 107% or higher. -FY2023 Outlook: Adjusted EBITDA of $4.10 billion to $4.25 billion, above March guidance's range and with a midpoint increase of $175 million Original article posted