Carnival tops quarterly earnings estimate as bookings build
Net yields exceeded company guidance, while higher fuel prices and currency rates weighed on adjusted earnings.
Carnival reported adjusted earnings of $1.43 per share for its August-ended quarter, above the FactSet consensus estimate of $1.35 and unchanged from a year earlier. The company said higher fuel prices and currency rates reduced adjusted earnings by 10 cents per share, while fuel costs lowered gross margin yields by 1.3% from the prior year.
Net yields, which measure revenue per passenger capacity unit, increased 2.4% and surpassed Carnival’s guidance, aided by strong onboard sales. Carnival said quarterly fuel consumption fell about 4%. Chief Executive Josh Weinstein told analysts that the company’s fuel-consumption rate had declined 26% since 2019 and 13% over the past three years.
Carnival said half of its 2027 capacity was already booked, while customer deposits reached a third-quarter record of $7.6 billion. Weinstein said booked occupancy and pricing for full-year 2027 were at record levels. He also said 2028 bookings had begun at higher occupancy and prices than the prior year. For its fiscal fourth quarter, Carnival forecast net yields to rise about 1.7% year over year, or 2.3% when the effect of loyalty programs is included.
