Carnival Q2 FY2022 Earnings Report Recap

Carnival missed on earnings, revenue, and room occupancy rates

Key Takeaways

  • Carnival's room occupancy rate of 69% improved significantly year over year (YOY) but failed to meet analyst predictions.
  • The company's room occupancy rate is a measure of how well it utilizes its total customer capacity.
  • Booking volumes for future sailing were close to double those of Q1 FY 2022 and reached the highest levels since the start of the pandemic.
Carnival Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Miss -$1.61 -$1.18
Revenue  Miss $2.4B $2.8B
Room Occupancy Rate  Miss 69% 72.1% 

Source: Predictions based on analysts' consensus from Visible Alpha

Carnival (CCL) Financial Results: Analysis

Carnival Corporation & plc (CCL) reported Q2 FY 2022 earnings that fell short of analysts' expectations across the board. Adjusted losses per share came in below predictions at -$1.61. Although revenue increased nearly 50% on a sequential basis, at $2.4 billion for the quarter, it nonetheless also missed analyst expectations. Carnival's Q2 FY 2022 ended May 31.

Carnival Room Occupancy Rate

Carnival's room occupancy rate for Q2 FY 2022 was 69%. This also fell short of analyst predictions, although it marked a strong improvement on a YOY basis as the company has resumed most of its operations following the pandemic-related shutdown. Carnival president and CEO Arnold Donald said that Carnival Cruise Line, the company's largest brand, expected occupancy to approach 110% during the company's Q3.

The occupancy rate provides a measure of how well a cruise line is utilizing its total passenger capacity. It is calculated by dividing the number of passengers during the relevant period by total passenger capacity over the same period. Passenger capacity assumes that each cabin accommodates two passengers, which means that an occupancy rate in excess of 100% is an indication that some cabins are filled with more than two passengers.

Carnival's Stock Performance and Next Earnings Report

Immediately following the earnings release, Carnival stock was trading up about 0.8% in after-hours trading. The company's shares have significantly underperformed the broader market in the past year. As of June 24, Carnival stock has provided a one-year trailing total return of -64.9% as compared with -11.0% for the S&P 500.

Carnival's next earnings report (for Q3 FY 2022) is expected to be released on Sept. 29, 2022.

Article Sources
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  1. Carnival Corp. "Carnival Corporation & PLC Provides Second Quarter 2022 Business Update."

  2. TradingView. "Price Chart: CCL and S&P 500."

  3. MarketScreener. "Carnival Corporation (CCL)."

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