Carnival stocks rise 5% on better-than-expected quarterly report

Carnival, in its latest financial report on Thursday, disclosed a smaller-than-anticipated quarterly deficit, surpassing revenue projections due to sustained demand that allowed cruise operators to increase ticket prices. The company's stock, having already more than doubled this year, experienced a 5 per cent uptick in early trading. Carnival's optimistic outlook extended to estimating a more than twofold increase in first-quarter core earnings compared to the previous year.

Despite the hike in ticket prices, cruises maintain their allure as a cost-effective alternative to many land-based vacations, particularly for exotic destinations, attracting a younger demographic willing to allocate discretionary income for a unique experience. Carnival highlighted a surge in booking volumes during the two weeks around Black Friday and Cyber Monday, reaching an all-time high.

CEO Josh Weinstein expressed confidence, stating, "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." The company anticipates a 16.5 per cent year-on-year increase in net yields for the first quarter, reflecting revenue per passenger per cruise day, excluding costs.

In its fourth-quarter financials, Carnival reported a net loss of $48 million, or 4 cents per share, a significant improvement from the $1.6 billion loss, or $1.27 per share, recorded a year earlier. Analysts, based on LSEG data, had projected a loss of 13 cents. The company's fourth-quarter revenue stood at $5.4 billion, surpassing market expectations of $5.31 billion.

(With Reuters Inputs)