IB Net Payout Yields Model

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

Finviz Chart

Original article posted on June 23

  • Carnival Corporation reports FQ2'23 earnings on June 26.
  • The consensus estimates are for the cruise line to report another large loss for the May quarter due to ongoing high-interest expenses.
  • CCL stock still has upside, but Carnival is no longer the favorite in the sector after the big rally.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
The cruise line sector has already seen a huge run-up heading into the Carnival Corp. (NYSE:CCL) earnings on June 26. The company is still forecast to report a large loss for the quarter in a negative sign

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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