Carnival, the cruise company, recorded a smaller loss than anticipated in the second quarter which led to a growth in demand. The loss for the quarter was at 32 cents per share compared to the 34 cents per share that analysts had predicted, according to FactSet. In the same period last year, Carnival had posted a larger loss of $1.61 per share. Sales for the quarter were at $4.911 billion which is higher than Wall Street’s prediction of $4.788 billion. Furthermore, the cruises company had sales of $2.401 billion in the same period last year.
CEO Josh Weinstein stated in the earnings release that the all-time high bookings and customer deposits show clear momentum on an upward trajectory. They expect adjusted earnings of $4.10 billion to $4.25 billion for the full year 2023. This is “above March guidance’s range and with a midpoint increase of $175 million.”
Although Carnival stock has significantly gained 84% over the past year, it was down by 6.3% to $14.80 in early trading on Monday—possibly due to a selloff after the earnings report. This put it on pace for its largest percent decrease since November 2022 when it lost 14%, according to Dow Jones Market Data.
Peers Royal Caribbean Group (RCL) and Norwegian Cruise Line (NCLH) were also in the red, declining 0.9% and 2.5%, respectively.