NYSE$CCL

Carnival Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Carnival's business showed a positive trajectory with adjusted EBITDA over $300 million, reaching nearly 90% occupancy in August, and booking volumes exceeding 2019 levels after relaxing protocols.

Carnival Corporation & plc reported a U.S. GAAP net loss of $770 million and an adjusted net loss of $688 million for Q3 2022. Adjusted EBITDA turned positive for the first time since resuming guest cruise operations, exceeding $300 million. Revenue increased by nearly 80% compared to Q2 2022, and occupancy increased by 15 percentage points from the prior quarter.

  • U.S. GAAP net loss of $770 million and adjusted net loss of $688 million for the third quarter of 2022.
  • Adjusted EBITDA for the third quarter of 2022 was over $300 million, turning positive for the first time since the resumption of guest cruise operations.
  • Revenue increased by nearly 80% in the third quarter of 2022 compared to second quarter 2022.
  • Occupancy in the third quarter of 2022 increased 15 percentage points from the prior quarter.

Headline financials

Total Revenue

$4.31B

Previous: $546M+688.5%
EPS (adj)

-$0.58

Previous: -$1.75+66.9%
Occupancy Percentage

84.0%

No prior period
Capital Expenditures

-$3.76B

Previous: -$3.12B-20.5%
Free Cash Flow

-$4.53B

Previous: -$5.96B+24.0%
Net Income

-$770M

Previous: -$2.84B+72.8%
Operating Income

-$279M

Previous: -$2.06B+86.4%
Gross Profit

$926M

Previous: -$1.07B+186.5%
Cash & Equivalents

$7.07B

Previous: $7.15B-1.1%
Total Assets

$51.9B

Previous: $53.5B-3.0%
Stock-Based Comp

$25M

Previous: $29M-13.8%

Revenue & EPS history

Carnival · Revenue · Quarterly

$4.31B

Q3 2022+688.5%vs Q3 2021
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

Carnival · $4.31B total across 2 segments · Q3 2022

  • Passenger Ticket
    $2.6B
  • Onboard and Other
    $1.71B

Forward guidance

The company expects a net loss and breakeven to slightly negative adjusted EBITDA for the fourth quarter ending November 30, 2022. They anticipate positive adjusted EBITDA for the second half of 2022 and expect improvement in adjusted EBITDA and occupancy, with occupancy returning to historical levels during 2023.

Tailwinds

  • Positive adjusted EBITDA expected for the second half of 2022.
  • Improvement in adjusted EBITDA expected on a year-over-year basis.
  • Occupancy expected to return to historical levels during 2023.
  • Booking volumes for all future sailings are considerably higher than strong 2019 levels since announcing relaxed protocols.
  • Strategic fleet changes and portfolio optimization efforts expected to provide strong tailwinds.

Headwinds

  • Net loss expected for the fourth quarter ending November 30, 2022.
  • Breakeven to slightly negative adjusted EBITDA expected for the fourth quarter ending November 30, 2022.
  • Cumulative advance bookings for the fourth quarter of 2022 are below the historical range and at lower prices.
  • Costa Cruises continues to evaluate deployment options and fleet optimization alternatives given its significant presence in Asia, particularly China, which remains closed to cruising.
  • Year-to-date adjusted cruise costs excluding fuel per ALBD during 2022 has benefited from the sale of smaller-less efficient ships and the delivery of larger-more efficient ships, this benefit is offset by a portion of its fleet being in pause status for part of the year, restart related expenses, an increase in the number of dry dock days, the cost of maintaining enhanced health and safety protocols, inflation and supply chain disruptions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.2%

Avg return

30 days after

44%

32 / 72 earnings

Positive

+29.0%

Q1 2020

Best reaction

-25.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-3.1%
Q4 2025+9.7%+10.3%+2.0%
Q3 2025-4.0%-6.7%-9.0%
Q2 2025-1.2%+0.8%+3.2%
Q1 2025-1.2%-1.3%-15.1%
Q4 2024+2.2%+2.4%+2.7%
Q3 2024-2.8%-2.8%+19.5%
Q2 2024+12.1%+14.2%+4.3%
Q1 2024-4.1%-4.5%-11.5%
Q4 2023+4.8%+3.0%-4.1%
Q3 2023-5.5%-9.3%-22.9%
Q2 2023+0.6%+19.2%+11.7%
Q1 2023+1.1%+10.0%-5.1%
Q4 2022-2.7%-3.6%+29.3%
Q3 2022-25.2%-18.9%-2.4%
Q2 2022+9.3%-8.1%-4.0%
Q1 2022-3.4%-3.0%+3.0%
Q4 2021+12.4%+16.0%+16.1%
Q3 2021+6.8%+3.4%-9.7%
Q2 2021-0.1%-8.4%-22.0%
Q1 2021-0.1%-3.0%-6.4%
Q4 2020-1.2%-2.9%+32.5%
Q3 2020-1.9%-12.3%-13.6%
Q2 2020+4.8%+19.9%-2.5%
Q1 2020+29.0%+47.1%+35.1%
Q4 2019+9.9%+9.2%+11.3%
Q3 2019-9.3%-11.6%-7.3%
Q2 2019-11.8%-14.0%-14.7%
Q1 2019-10.6%-10.5%-5.0%
Q4 2018-13.0%-16.0%-0.2%
Q3 2018-4.8%-5.8%-19.0%
Q2 2018-5.9%-9.8%-9.1%
Q1 2018-4.0%-2.0%-1.8%
Q4 2017+1.7%-0.4%+3.6%
Q3 2017+0.3%+1.7%+4.9%
Q2 2017+0.0%-2.1%+0.9%
Q1 2017+0.2%+0.1%+3.6%
Q4 2016+3.4%+3.3%+4.2%
Q3 2016+2.3%+3.3%-0.2%
Q2 2016+1.9%+2.8%+6.6%
Q1 2016+6.3%
Q4 2015+6.9%
Q3 2015-2.2%
Q2 2015-0.2%
Q1 2015+7.4%
Q4 2014+0.8%
Q3 2014+1.9%
Q2 2014-2.3%
Q1 2014-5.9%
Q4 2013+4.7%
Q3 2013-12.6%
Q2 2013+4.7%
Q1 2013-5.1%
Q4 2012-5.2%
Q3 2012-0.6%
Q2 2012-3.1%
Q1 2012-0.2%
Q4 2011-0.9%
Q3 2011-7.7%
Q2 2011+1.9%
Q1 2011-6.3%
Q4 2010+2.6%
Q3 2010-0.2%
Q2 2010+1.3%
Q1 2009+1.3%
Q1 2010+0.4%
Q4 2007-0.8%
Q2 2009-0.8%
Q4 2009-0.8%
Q3 2008-2.5%
Q3 2009-2.5%
Q4 2008-2.5%

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