- Carnival Corp‘s fourth-quarter adjusted earnings per share (EPS) exceeded expectations at 14 cents, up from a loss of 7 cents the previous year. Analysts had estimated 7.7 cents.
- The company’s reported EPS was 23 cents, improving from a loss of 4 cents per share year-over-year.
- Revenue reached $5.94 billion, marking a 10% increase compared to the same quarter last year. This exceeded the estimated revenue of $5.86 billion.
- Adjusted net income was $186 million, a significant turnaround from a $90 million loss the prior year. The estimated net income was $105.6 million.
- Adjusted EBITDA rose to $1.22 billion, a 29% increase year-over-year, surpassing the estimate of $1.18 billion.
- Available lower berth days grew by 3% to 23.9 million, close to the estimated 23.94 million.
- Passenger cruise days increased by 4.2% to 24.6 million, slightly under the estimated 24.68 million.
- Carnival carried 3.3 million passengers, a 6.5% increase from the previous year, nearing the expected 3.33 million.
- Occupancy levels reached 103%, compared to 101% in the previous year, meeting an estimate of 103.1%.
- For 2025, Carnival expects adjusted EBITDA per available lower berth day to reach its highest level in nearly two decades, achieving targets set for 2026 one year early.
- The company experienced broad-based progress with strong pricing in 2024 compared to 2023 across major cruise lines.
- Revenues hit an all-time high due to strong demand, outperforming initial 2024 guidance by $700 million and contributing nearly $2 billion more year-over-year.
- Carnival’s CEO, Josh Weinstein, highlighted expectations for 2025 to be another exceptional year with yield growth outpacing unit cost growth.
- Analyst ratings for Carnival include 20 buys, 3 holds, and 2 sells.
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Carnival Corp on Smartkarma
Analysts on Smartkarma are bullish on Carnival Corporation & Plc, focusing on its strategic moves to improve financial health and capitalize on the rebounding cruising industry. According to Value Investors Club, Carnival Cruise Lines is actively reducing debt, enhancing operational efficiency, and meeting rising demand, positioning itself for future cash flow growth and profitability. Meanwhile, Baptista Research underscores Carnival Corporation & plc’s impressive performance in the third quarter of 2024, with record-breaking revenue exceeding $8 billion, paving the way for sustained growth in upcoming fiscal years.
Furthermore, Baptista Research highlights Carnival Corporation & plc’s success in expanding market share through strategic brand realignment. The company’s second-quarter results for 2024 showcased record revenues, operating income, customer deposits, and booking levels, with significant yield increases driven by strong per diem growth. These positive analyses from top independent researchers indicate a bright outlook for Carnival Corporation & Plc as it navigates through the challenges and opportunities in the cruising industry.
A look at Carnival Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts reviewing the Smartkarma Smart Scores for Carnival Corp see a mixed long-term outlook. While the company scores well in Growth and Momentum, indicating positive future prospects, there are concerns in other areas. With a Value score of 3, Carnival Corp is considered fairly valued within the market. However, its Dividend score of 1 suggests a lower-than-average dividend yield, which may not be attractive to income-seeking investors. Additionally, the Resilience score of 2 indicates potential vulnerability to market fluctuations, which could impact the company’s stability in volatile times.
Carnival Corporation, a major player in the cruise industry, maintains a strong position for growth and momentum according to the Smartkarma Smart Scores. With cruises to popular destinations worldwide and a subsidiary that owns and operates hotels and lodges, the company has a diversified portfolio. While concerns exist in terms of dividends and resilience, Carnival Corp‘s overall outlook remains positive, supported by its solid Growth and Momentum scores. Investors are advised to carefully consider these factors when evaluating their long-term investment strategy in Carnival Corp.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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