Carnival Corp (NYSE:CCL) stock rose 0.24% (As on March 21, 11:27:08 AM UTC-4, Source: Google Finance) after the company raised its annual profit forecast on resilient customer spending even as it warned of “heightened macroeconomic volatility” amid escalating trade wars. Although customers have been more than willing to book premium voyages and splurge on board, U.S. President Donald Trump’s recent tariff policies could increase inflation further and hinder consumer spending on discretionary activities. The company experienced another early start to a successful wave season, continuing to execute on its proven yield management strategy. Having entered the year with less 2025 inventory available for sale, the company achieved higher prices (in constant currency) than last year on bookings taken during the first quarter for the remainder of 2025. The company’s cumulative advanced booked position for the remainder of the year remains strong, with pricing (in constant currency) at historical highs for each quarter, and occupancy in line with the prior year’s record levels. The company’s booking curve continues to be the furthest out on record.
Moreover, gross margin yields were 25 percent higher than 2024. Net yields (in constant currency) were 7.3 percent higher than 2024 and significantly outperformed December guidance by 270 basis points. Cruise costs per ALBD decreased 0.3 percent compared to 2024. Adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 1.0 percent compared to 2024 and were also better than December guidance, mainly due to the timing of expenses between the quarters. Record first quarter operating income of $543 million exceeded 2024 by $267 million, nearly doubling that of the prior year. Adjusted net income of $174 million, outperformed December guidance by $173 million led by strong net yield improvement. Record first quarter adjusted EBITDA of $1.2 billion increased 38 percent compared to 2024 and outperformed December guidance by $165 million.
CCL in the first quarter of FY25 has reported the adjusted earnings per share of 13 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents. The company had reported the adjusted revenue of $5.81 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $5.75 billion.
Carnival forecast current-quarter adjusted profit to be of 22 cents per share, just shy of analysts’ average estimate of 23 cents, according to data compiled by LSEG.
Travel group AAA in late January forecast that cruise vacation passenger growth was likely to cool off after seeing a post-pandemic boom. Carnival, however, expects occupancy for 2025 to be in line with the previous year’s record levels. It sees fiscal 2025 adjusted earnings per share of about $1.83, compared with its previous forecast of about $1.70.