Cruise line giant Carnival reported better-than-expected fourth-quarter earnings and revenue Thursday with the travel stock announcing it is seeing "strong booking momentum." CCL stock angled higher Thursday.
Carnival announced a fourth-quarter loss of 7 cents per share, compared to an 85-cent loss a year ago, with revenue growing 41% to $5.4 billion. Ahead of earnings, analysts forecast a loss of 13 cents per share and sales of $5.3 billion for the cruise line company.
"We ended the year on a high note with another record-breaking quarter that exceeded expectations and achieved positive full year adjusted net income," Chief Executive Josh Weinstein said in the earnings release.
Meanwhile, occupancy in the fourth quarter was more than 101%, in line with the company's expectations and historical levels. Total customer deposits reached $6.4 billion, up 25% compared to last year, according to CCL.
CCL stock advanced 6.2% to 19.20 Thursday during market action. On Wednesday, Carnival shares sank 3.4% to 18.07. After Thursday, the travel stock surged around 28% in December after climbing more than 30% higher in November. The strong advance in November broke three consecutive monthly losses.
2024 Guidance From CCL
"We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices," Weinstein said. "We continue to experience strong bookings momentum across the board, with our European brands showing remarkable strength."
For 2024, Carnival predicts adjusted EBITDA of approximately $5.6 billion, which would represent more than 30% growth compared to 2023. The cruise line giant also forecasts net yields growing around 8.5% with full year occupancy returning to historical levels.
In Q1 2024, the company predicts adjusted EBITDA of $800 million, more than double the first quarter of 2023, and net yields growth of 16.5%.
CCL Stock And Cruise Stocks
Carnival shares have formed a cup base with a 19.55 buy point, according to MarketSmith analysis. CCL stock has retreated somewhat from hitting a 2023 high of 19.55 on July 5, its highest level since April 2022. However, CCL has rallied 124% in 2023, handily outperforming the S&P 500 index.
At the end of September, Carnival topped Q3 earnings and revenue expectations, posting its first quarterly profit since before the Covid-19 pandemic. Carnival reported adjusted earnings of 86 cents per share then, compared to a loss of 58 cents per share last year. Revenues leapt 59% to an all-time record $6.85 billion. Carnival recorded $6.53 billion in revenue for Q3 2019, prior to the pandemic.
Cruise lines sailed higher in the first half of the year, driven by a wave of bookings as consumers cut loose to go on long-awaited vacations after pandemic lockdowns were lifted in 2022.
In late October, cruise line giant Royal Caribbean warned that the Israel-Hamas war had led to some cruise cancellations. But the company's Q3 results topped expectations and management hoisted its full-year outlook.
At the time, Royal Caribbean added it is working with the State Department to evacuate U.S. citizens from Israel, which it says will cause a 3-cent per share impact on earnings.
"Looking ahead, we see accelerating demand as we build the business in 2024," Chief Executive Jason Liberty told analysts. Liberty also noted Royal Caribbean's booked load factors are higher than all prior years and at higher rates.
Meanwhile, Norwegian Cruise Line on Nov. 1 also beat Wall Street's Q3 predictions, with EPS of 76 cents up from a 64-cent per share loss a year ago.
RCL and NCLH both rallied more than 5% Thursday along with CCL stock.
Carnival stock has an 89 Composite Rating out of a best-possible 99. CCL stock also has a 96 Relative Strength Rating and a 74 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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