Carnival Stock Slips After Record-Setting Quarter Offset by Weak Outlook

Investopedia article; CCL was down much lower earlier, but is now at -2.75%.

The outlook portion that is bringing down CCL stock:

Carnival anticipates net yields growing by approximately 5.0% in constant currency in the fourth quarter and by about 10.4% for the full year. Analysts surveyed by Visible Alpha were looking for 5.76% and 10.52%, respectively. Net yield measures revenue per available passenger cruise day, after deducting expenses like airfare, commissions, and other direct costs.

Some other info on the earnings from street insider:

Carnival Corp. (NYSE: CCL) reported Q3 EPS of $1.27, $0.10 better than the analyst estimate of $1.17. Revenue for the quarter came in at $7.89 billion versus the consensus estimate of $7.82 billion.

2024 Outlook

For the full year 2024, the company expects:

• Net yields (in constant currency) up approximately 10.4 percent compared to 2023, better than June guidance, based on continued strength in demand.
• Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 3.5 percent compared to 2023, approximately 1 percentage point better than June guidance driven by cost saving opportunities, accelerated easing of inflationary pressures and benefits from one-time items.
• Adjusted EBITDA of approximately $6.0 billion, up over 40 percent compared to 2023 and better than June guidance by nearly $200 million.
• Adjusted return on invested capital (“ROIC”) of approximately 10.5 percent, an improvement of approximately 5.0 percentage points compared to 2023 and half a point better than June guidance.
• For the fourth quarter of 2024, the company expects:
• Net yields (in constant currency) up approximately 5.0 percent compared to particularly strong 2023 levels.
• Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 8.0 percent compared to the fourth quarter of 2023 due primarily to higher dry-dock days and higher investment in advertising.
• Adjusted EBITDA of approximately $1.14 billion, up 20 percent compared to the fourth quarter of 2023.

Again see the outlook above that explains why the stock is negative today.