Carnival Corp & PLC on Tuesday raised guidance after second quarter results beat guidance on ‘every measure’.
Shares in the Miami-based cruise operator rose 8.2% to 1,237.24 pence each in London on Tuesday.
In the three months to May 31, Carnival reported net income of $92 million, swinging from a $407 million loss a year prior. Revenue rose 18% to $5.78 billion from $4.91 billion.
Adjusted net income of $134 million, or $0.11 per share, outperformed March guidance by nearly $170 million, driven by higher ticket prices, higher onboard spending and the timing of expenses between quarters, Carnival said.
‘We have made incredible strides in improving our commercial operations, strategically reallocating our portfolio composition and formulating growth plans, while strengthening even further our global team, the best in the business.
‘Off the back of that effort, we closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure,’ commented Chief Executive Officer Josh Weinstein.
‘Based on continued strong demand trends, we are taking up our expectations for the year with net yields now forecasted to top ten percent and propelling us towards double-digit returns on invested capital. On our upwardly revised guidance, we will be on average around two-thirds of the way to achieving our three 2026 SEA Change targets after just one year.
‘With two years remaining, it certainly gives us even more conviction in achieving these deliverables,’ Weinstein added.
For 2024 Carnival expects net yields to rise around 10.25% compared to 2023, around 75 basis points better than its March guidance, based on continued strength in demand and with occupancy at historical levels.
It sees adjusted cruise costs excluding fuel per available lower berth day being around 0.5 percentage points better than the March guidance.
Carnival also forecasts adjusted earnings before interest, tax, depreciation and amortisation of around $5.83 billion, up nearly 40% compared to 2023, and better than the guidance by around $200 million.
Adjusted net income is forecast of around $1.55 billion, better than the guidance by around $275 million.
Looking further ahead, Carnival said it was ‘very pleased’ with the continued acceleration of demand for 2025 and beyond.
‘While still early, the cumulative advanced booked position for full year 2025 is even higher than 2024 in both price (in constant currency) and occupancy.’
The firm added that the cumulative booked position for the rest of 2024 continues to be the ‘best on record,’ with occupancy still nicely above 2023 levels at considerably higher prices.
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