Home Finance News Carnival Records Pre-COVID Profit Amid Stock Dive

Carnival Records Pre-COVID Profit Amid Stock Dive

Carnival Records Pre-COVID Profit Amid Stock Dive

Carnival Corp., the cruise operator, reported its first quarterly profit since before the COVID-19 pandemic. The company experienced “significantly elevated” demand, which resulted in record revenue and bookings. However, despite the positive results, Carnival Corp. provided a downbeat outlook, causing shares of the company to fall in choppy trading. The stock initially swung between gains and losses before ultimately slumping to a 3 1/2-month low and heading towards a fifth-straight weekly loss.

For the fiscal third quarter ending in August, Carnival Corp. reported a net income of $1.07 billion, or 79 cents a share, compared to a loss of $770 million, or 65 cents a share, in the same period last year. Adjusted earnings per share for the quarter were 86 cents, surpassing the FactSet consensus of 75 cents. The company had not reported a net profit since November 2019, and this was the first adjusted profit since February 2020. Carnival Corp.’s revenue also grew by 59.2% to $6.85 billion, beating the FactSet consensus of $6.71 billion.

While booking volumes remained at high levels, the company provided a less favorable outlook for the fourth quarter. Carnival Corp. expects an adjusted per-share loss of 18 cents to 10 cents, wider than the current consensus of 8 cents a share. Additionally, the company revised its guidance range for adjusted Ebitda lower for fiscal 2023. Despite the positive quarterly results, the company’s stock has experienced a downward trend, with a five-week losing streak and a 20.1% drop over the past three months.

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