Carnival Corp Raises Profit Forecast Again, Beats Expectations in Third Quarter
Carnival Corp continues to exceed expectations as it raises its annual profit forecast for the third time this year. The cruise operator's third-quarter results surpassed market estimates, driven by strong demand for cruise vacations and lower operational costs.
CEO Josh Weinstein highlighted the company's success, stating, "Strong demand enabled us to increase our full-year yield guidance for the third time this year, and we improved our cost guidance, driving more revenue to the bottom line."
Carnival's third-quarter revenue of $7.90 billion exceeded expectations, with gross margin yields growing by 19% compared to the previous year. The company also raised its 2024 adjusted profit per share expectation to $1.33, up from the earlier forecast of $1.18, and increased its full-year net yield projection to 10.4%.
However, Carnival's target for fourth-quarter earnings per share fell below analyst estimates, leading to a 2% decline in the company's U.S.-listed shares during early market trading. The company cited increased cruise costs, excluding fuel, due to more maintenance days and higher advertising spending as reasons for the discrepancy.
In conclusion, Carnival Corp's strong performance in the third quarter showcases the resilience of the cruise industry amid the ongoing challenges of the pandemic. Investors should pay attention to the company's continued success and consider its future growth potential in the recovering travel sector.