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Aug 31, 2024
Carnival Q3 2024 Earnings Report
Achieved record-setting operating results, outperformed third quarter guidance, and raised full year 2024 guidance for the third time.
Key Takeaways
Carnival Corporation & plc reported a strong third quarter with record-high revenues and operating income. Net income increased by over 60% compared to the previous year, and the company raised its full-year adjusted EBITDA guidance.
Net income was $1.7 billion, an increase of over 60 percent compared to 2023 and adjusted net income outperformed June guidance by $170 million.
Revenues hit an all-time high of $7.9 billion, up $1.0 billion compared to the prior year.
Operating income of $2.2 billion exceeded 2023 levels by $554 million.
Raised its full year 2024 adjusted EBITDA guidance to approximately $6.0 billion, up over 40 percent compared to 2023 and better than June guidance by nearly $200 million.
Carnival
Carnival
Carnival Revenue by Segment
Revenue by Segment
Onboard and Other Revenue
CapyFin.com Forward Guidance
For the full year 2024, the company expects net yields to be up approximately 10.4 percent compared to 2023, adjusted cruise costs excluding fuel per ALBD to be up approximately 3.5 percent compared to 2023, and adjusted EBITDA of approximately $6.0 billion.
Positive Outlook
- Net yields (in constant currency) up approximately 10.4 percent compared to 2023, better than June guidance, based on continued strength in demand.
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 3.5 percent compared to 2023, approximately 1 percentage point better than June guidance driven by cost saving opportunities, accelerated easing of inflationary pressures and benefits from one-time items.
- Adjusted EBITDA of approximately $6.0 billion, up over 40 percent compared to 2023 and better than June guidance by nearly $200 million.
- Adjusted return on invested capital of approximately 10.5 percent, an improvement of approximately 5.0 percentage points compared to 2023 and half a point better than June guidance.
- Net yields (in constant currency) up approximately 5.0 percent compared to particularly strong 2023 levels for Q4.
Challenges Ahead
- Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 8.0 percent compared to the fourth quarter of 2023 due primarily to higher dry-dock days and higher investment in advertising.
- Fuel cost per metric ton consumed (excluding European Union Allowance (“EUA”)) $590 for Q4.
- Fuel expense (including EUA expense) $0.43 billion for Q4.
- Depreciation and amortization (in billions) $0.67 for Q4.
- Interest expense, net of capitalized interest and interest income (in billions) $0.41 for Q4.