Earnings To Watch: Carnival (CCL) Reports Q1 Results Tomorrow

Kayode Omotosho /
2024/03/26 3:00 am EDT

Cruise ship company Carnival (NYSE:CCL) will be announcing earnings results tomorrow before market open. Here's what investors should know.

Last quarter Carnival reported revenues of $5.40 billion, up 40.6% year on year, beating analyst revenue expectations by 2.3%. It was an impressive quarter for the company, with a decent beat of analysts' earnings estimates. On the other hand, its number of passenger cruise days unfortunately missed.

Is Carnival buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Carnival's revenue to grow 21.9% year on year to $5.40 billion, slowing down from the 173% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.

Carnival Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upward revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Carnival's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Scholastic reported revenue decline of 0.4% year on year, missing analyst estimates by 1.7%. Nike traded down 7% on the results, and Scholastic was up 1.7%.

Read our full analysis of Nike's results here and Scholastic's results here.

Investors in the consumer discretionary segment have had steady hands going into the earnings, with the stocks up on average 1.8% over the last month. Carnival is up 17.2% during the same time, and is heading into the earnings with analyst price target of $27.5, compared to share price of $17.3.

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