Carnival Corp (NYSE:CCL) stock fell 3.84% (As on March 28, 11:04:17 AM UTC-4, Source: Google Finance) after the company reported its latest quarterly earnings, topping profit and revenue expectations. The company has raised its annual profit forecast, anticipating a record year of bookings as the company benefits from a rise in people seeking cruise vacations for the first time. Cruise operators are recording all-time high booking rates as more travelers switch to cheaper sea-borne experiences over expensive land-based alternatives such as booking hotels or flights, providing them more room to raise prices. Bookings for the rest of 2024 remain the best year on record with total customer deposits reaching $7 billion in the first quarter, the company said. New-to-cruise customers surged more than 30% year-over-year, Carnival said. Adjusted cruise costs, excluding fuel in constant currency, were up 7.3% in the first quarter from a year earlier, but 2% lower than the company’s forecast.

However, cost improvements of more than $250 million are being offset by the $130 million hit from re-routing ships in the Red Sea region, higher fuel prices, and currency exchange rates, CFO David Bernstein said. The cruise operator raised the expected impact of the Red Sea disruptions to $0.09 per share from the $0.07 to $0.08 it had estimated in January. Carnival also estimated an impact of up to $10 million on full-year adjusted EBITDA and adjusted net income following Baltimore’s Francis Scott Key Bridge collapse

CCL in the first quarter of FY 24 has reported the adjusted loss per share of 14 cents, beating the analysts’ estimates for the adjusted loss per share of 17 cents. The company had reported the adjusted revenue growth of 22 percent to $5.4 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $5.33 billion.

Looking ahead, CCL expects full-year net yields to be up approximately 9.5% compared to 2023, over a point better than the company’s December guidance, based on continued strength in demand and with occupancy at historical levels. It also sees a full-year adjusted EBITDA of approximately $5.63 billion, which is better than its December guidance. The cruise operator now expects full-year adjusted profit per share of 98 cents, compared with its prior forecast of 93 cents. Analysts on average were expecting a profit of $1 per share, according to LSEG data.

For Q2, net yields are expected to be up approximately 10.5%, while adjusted EBITDA is seen at approximately $1.05 billion.