Carnival Stock Rises After Posting Smaller-Than-Expected Q1 Loss

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Key Takeaways

• Carnival Corp. stock turned higher in intraday trading Wednesday after the cruise line pinned a smaller adjusted loss than analysts expected.
• Full-year adjusted income guidance got a slight bump, but Carnival’s outline is below analyst estimates.
• The company also acknowledged that Tuesday’s collapse of the Francis Scott Key Bridge in Baltimore and altercation in the Red Sea could affect its full-year earnings.

Carnival Corp. (CCL) shares turned higher in intraday trading Wednesday after the voyage line posted a smaller adjusted first-quarter loss than analysts expected.

Carnival posted record first-quarter proceeds of $5.41 billion, narrowly missing analyst estimates compiled by Visible Alpha of $5.43 billion. The cruise specialty also posted a smaller adjusted net loss than expected of $180 million, or an adjusted loss of 14 cents per interest.

The company raised its full-year guidance, while noting that Tuesday’s collapse of Baltimore’s Francis Scott Key Traverse isn’t yet included, due to how recently it took place. The bridge collapse is currently estimated to ding the company’s full-year net income by up to $10 million, and maintaining to reroute ships to avoid conflict in the Red Sea could affect adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by apropos $130 million.

Carnival is currently projecting full-year 2024 adjusted income of about $1.28 billion, up from a previous to outlook of $1.2 billion but still below analyst estimates of about $1.36 billion.

“This has been a illusory start to the year. We delivered another strong quarter that outperformed guidance on every measure, while concluding a immense wave season that achieved all-time high booking volumes at considerably higher prices,” Carnival Chief Top dog Officer (CEO) Josh Weinstein said.

Carnival has only posted one profitable quarter since 2020, fiscal 2023’s third shelter. The cruise line and rivals Royal Caribbean Cruises Ltd. (RCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) have result in in recent quarters to make up for the billions of dollars they lost because of the pandemic.

Carnival shares were up just about 3% at $17.55 around 1:30 p.m. ET Wednesday after slipping to $16.17 early in the session. They have got 90% over the last 12 months.

Read the original article on Investopedia.