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Shares of Carnival Corporation & plc on Wednesday rose 5%. The stock has gained 22% annually. There was positive sentiment about the company’s outlook after it reported better-than-expected results for the first quarter of 2023 earlier this week. Here are four factors that bode well for this cruise operator:
improved results
Carnival reported revenue of $4.4 billion for the first quarter of 2023, which represents 95% of the level of 2019. This is an improvement from the fourth quarter of 2022, which was at 80% of the level of 2019 and earned more than the third quarter of 2022, which was 66% of the level 2019.
A narrower loss
In Q1 2023, Carnival posted a net loss of $693 million, or $0.55 per share, on a GAAP basis. Adjusted net loss was $690 million, or $0.55 per share. This is narrower than the $750-850 million net loss guidance given in December.
Power in order
Carnival continues to increase demand, with the company achieving the highest monthly order volume in its history in Q1. The order window has returned to historical patterns, indicating an increasing demand environment. The order curve for the North American and Australian (NAA) segment is similar to the peak level in 2019, while for the European segment, more than 80% has recovered from the 2019 level.
In its quarterly conference call, Carnival stated that for the remainder of 2023, its cumulative forward bookings position at higher ticket prices normalized for future cruise credits (FCCs) compared to strong 2019 prices with booked occupancy remaining on the higher end upper. historical coverage.
Outlook
For the full year 2023, Carnival expects capacity to grow 4.5% compared to 2019. Occupancy is expected to be 100% or higher compared to 2019. In terms of pricing, the company expects net per diem to rise 3-4% on a constant currency basis compared to 2019 when the base was reported, it is expected to rise by 1-2%.
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