Carnival Corp Raises Annual Profit Forecast for the Third Time

(Reuters) – Carnival Corp raised its annual profit forecast for the third time on Monday and beat market expectations for third-quarter results, fueled by strong demand for cruise vacations and easing operational costs.

Cruise operators are benefiting from increased demand for vacations at sea during the summer, contributing to a robust year as more travelers choose the cruise experience.

“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,” said Carnival’s (NYSE:CCL) CEO Josh Weinstein in a statement.

Carnival’s third-quarter revenue of $7.90 billion surpassed estimates, with gross margin yields increasing by 19% compared to the previous year.

The company raised its adjusted profit per share expectation for 2024 to $1.33, up from an earlier forecast of $1.18. Additionally, Carnival increased its full-year net yield projection to 10.4%, from the previous estimate of 10.25%.

However, the company’s target for fourth-quarter earnings per share of 5 cents fell short of analyst estimates of 7 cents. Consequently, the cruise operator’s U.S.-listed shares saw a 2% decline in early market trading.

The Miami, Florida-based company anticipates adjusted cruise costs, excluding fuel, will rise by about 8% in the current quarter compared to last year due to increased maintenance days and higher advertising spending.