Carnival's Q1 Results Miss Expectations, Predicts Loss For Q2, FY22

Carnival's Q1 Results Miss Expectations, Predicts Loss For Q2, FY22
  • Carnival Corp CCL reported first-quarter FY22 revenues of $1.62 billion, missing the consensus of $2.30 billion. It reported revenues of $26 million last year.
  • Operating costs and expenses doubled to $3.1 billion. The operating loss contracted to $(1.49) billion from $(1.52) billion a year earlier.
  • Revenue per passenger cruise day for the cruise segments increased 7.5% compared to 2019.
  • Occupancy in the first quarter of 2022 was 54%, and the company's cruise cost per available lower berth day rose 8.6% versus 2019.
  • EPS loss of $(1.66) missed the consensus of $(0.89). Adjusted net loss narrowed to $(1.88) billion against $(1.95) billion in Q1 FY21.
  • The company held $6.9 billion in cash and equivalents as of February 28, 2022.
  • Carnival said 75% of its capacity had resumed guest cruise operations as of March 22, 2022. The company expects to have each brand's entire fleet back in guest cruise operations for its respective summer season.
  • "The company believes monthly adjusted EBITDA will turn positive at the beginning of its summer season," said CEO Arnold Donald.
  • The company noted ongoing resumption of its guest cruise operations and the increased uncertainty given the current invasion of Ukraine, including its effect on fuel price, are collectively having a material impact on its business.
  • Carnival expects a net loss for Q2 and 2022. However, the company expects a profit for Q3 of 2022.
  • Price Action: CCL shares are trading lower by 1.61% at $18.65 on Tuesday's last check.

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