Carnival Shares Sink On Q3 Miss, Expected Hurricane Ian Impact

Carnival Shares Sink On Q3 Miss, Expected Hurricane Ian Impact
  • Carnival Corp CCL reported third-quarter FY22 revenues of $4.30 billion, missing the consensus of $5.13 billion.
  • Passenger Cruise Day (PCD) increased 55% Q/Q to 17.7 million.
  • Available lower berth days (ALBD) for Q3 were 21 million, representing 92% of total fleet capacity.
  • Selling and administrative expenses rose 47% to $625 million.
  • The operating loss for the quarter narrowed to $(279) million from a loss of $(2.1) billion last year.
  • The company held $7.1 billion in cash and equivalents as of August 31, 2022.
  • Adjusted EBITDA for the quarter was $303 million.
  • EPS loss for the quarter was $(0.65) versus $(2.50) a year ago. 
  • The company's GAAP net loss was $(770) million, and the adjusted net loss was $(688) million for Q3.
  • Outlook: Carnival said the cumulative advance bookings for Q4 FY22 are below the historical range and at lower prices.
  • The company expects a net loss and breakeven to slightly negative adjusted EBITDA for Q4 ending November 30, 2022.
  • Hurricane Ian Impact: Along with the earnings report, Carnival could face more headwinds from the impact of Hurricane Ian.
  • The company has closed several ports and has either delayed or canceled several cruise plans.
  • The issues above could lead to customer complaints, refunds, and fewer future bookings, all items that could weigh on future financial results.
  • RelatedHurricane Ian: What Florida Theme Parks, Cruise Lines And Sports Are Doing Before It Hits
  • Price action: CCL shares are trading lower by 19% at $7.41 on the last check Friday.
  • Photo Via Company

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