Latest news with #JoshWeinstein
Yahoo
22-03-2025
- Business
- Yahoo
Carnival PLC (CUK) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic Debt ...
Revenue: Achieved first-quarter high-water marks for revenue. EBITDA: Reached $1.2 billion, a near 40% year-over-year increase. Net Income: Exceeded guidance by more than $170 million. Yield Increase: 7.3% increase, surpassing yield guidance. Operating Income: Nearly doubled for the quarter. Operating and EBITDA Margins: Improved over 400 basis points year over year. Customer Deposits: Up over $300 million versus the prior year. Interest Expense: Favorability of $13 million due to refinancing efforts. Debt Refinancing: Refinanced $5.5 billion of debt, reducing interest expense by $145 million annually. Total Debt: Reduced by $0.5 billion, ending the quarter with $27 billion. Cash Interest Rate: Reduced to 4.6%. Warning! GuruFocus has detected 6 Warning Signs with CUK. Release Date: March 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Carnival PLC (NYSE:CUK) achieved a robust 7.3% yield increase, surpassing their yield guidance. Operating income nearly doubled for the quarter, with EBITDA reaching $1.2 billion, marking a 40% year-over-year increase. The company raised its full-year earnings guidance by $185 million due to strong first-quarter results. Carnival PLC (NYSE:CUK) is on track to meet its 2026 financial targets a year early, with ROIC expected to hit 12%. The company has successfully refinanced $5.5 billion of debt, reducing interest expenses and improving leverage metrics. Despite strong performance, Carnival PLC (NYSE:CUK) acknowledges heightened macroeconomic and geopolitical volatility. There are increased dry-dock costs due to unplanned dry docks, impacting cruise costs. The company faces challenges in maintaining yield improvements amidst global economic uncertainties. Carnival PLC (NYSE:CUK) has limited capacity growth, which could constrain future revenue expansion. The sale of Seabourn Sojourn, while financially beneficial, reduces the fleet size of the Seabourn brand. Q: Can you provide more color on consumer demand trends since the 4Q period? A: Josh Weinstein, CEO, noted that wave season was a success, setting a record for bookings for future years. They entered wave season with historic occupancy and pricing, which they used to their advantage, resulting in strong Q1 yields and maintaining yield guidance for the rest of the year over 4%. Q: You beat Q1 by $165 million but raised guidance by only $100 million. Can you clarify the impact of ALBDs and dry docks on this? A: David Bernstein, CFO, explained that the flow-through to the year was due to yield improvements and $100 million in interest expense savings. The cost was mostly timing-related, with some permanent savings offset by reduced ALBDs due to extra dry docks. Q: Are there any differences in consumer booking behavior between Europe and America, or between drive-to and fly-to markets? A: Josh Weinstein, CEO, stated that European brands have been outperforming, driven by structural improvements. The portfolio approach allows them to cater to different consumer preferences across regions, with no significant differences in booking behavior noted. Q: How do you perceive the industry's willingness to hold price if consumer demand slows? A: Josh Weinstein, CEO, emphasized that Carnival is focused on executing its strategy, resulting in strong bookings and visibility. With no capacity growth, they are in a favorable position, and the industry overall is on solid ground with good leaders. Q: Are there any forward indicators of consumer sentiment beyond bookings and onboard spend? A: Josh Weinstein, CEO, mentioned that cancellations are consistent, and there are no other significant indicators to flag. They are confident in their guidance and ability to deliver results despite global volatility. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Carnival Cruise Q1 Profit Soars On Higher Ticker Prices And Strong Occupancy
Carnival Corp (NYSE:CCL) shares are trading lower on Friday following the release of its first-quarter FY25 earnings results. The company reported first-quarter sales growth of 7.5% year-on-year to $5.81 billion, beating the analyst consensus estimate of $5.75 billion. Passenger ticket sales increased 5.9% to $3.8 billion. Adjusted EPS of 13 cents beat the consensus estimate of 2 cents. Average lower berth day totaled 23.6 million. Occupancy percentage for the quarter was 103% in the quarter. Net yields (in constant currency) were 7.3% higher than 2024. Cruise costs per ALBD decreased 0.3%. The company registered an operating income of $543 million, a 96.7% surge YoY. Adjusted EBITDA in the quarter stood at $1.2 billion, up 38% YoY. Total customer deposits reached $7.3 billion, reflecting continued growth in ticket prices and pre-cruise onboard sales. Carnival held $833 million in cash and equivalents as of February 28, 2025. Also Read: The operating cash flow for the quarter was $925 million. The company reduced its debt balance by another $0.5 billion, ending the quarter with $27.0 billion of total debt. 'Our first quarter was truly characterized by outperformance. This was across the board and led by incredibly strong demand throughout our portfolio including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending,' said CEO Josh Weinstein. 'While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year and we remain on track to have another stellar year across our cruise brands.' Outlook: Carnival sees second-quarter net yield growth of 4.4% in constant currency. Adjusted EPS of $0.22 against an estimate of $0.23. Carnival raised the FY25 net yield guidance from 4.2% to 4.7%. The cruise operator also raised the FY25 adjusted EPS outlook from $1.70 to approx. $1.83, compared to an estimate of $1.78. Carnival is expecting to achieve both 2026 SEA Change financial targets one year in advance, with adjusted return on invested capital (ROIC) and adjusted EBITDA per available lower berth (ALBD) for 2025, reaching the highest levels in nearly two decades. Price Action: CCL shares traded lower by 2.03% at $20.77 at last check Friday. Read Next:Photo by Darryl Brooks via Shutterstock. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Carnival Cruise Q1 Profit Soars On Higher Ticker Prices And Strong Occupancy originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Carnival raises annual profit forecast on strong cruise demand
(Reuters) -Cruise operator Carnival Corp raised its annual profit forecast and beat estimates for first-quarter profit and revenue on Friday, helped by higher ticket prices as well as strong advance bookings and on-board customer spending. Even though cruise ticket prices have ticked up in recent years, Americans have been more than willing to make early bookings for their getaways during the promotions-heavy "wave season", which started in January, and are also splurging heavily during their voyages. This helped Carnival counter the rising costs of operations, including fuel and dock expenses and promotional costs. However, Carnival shares fell about 5% in early trading after the company forecast adjusted earnings per share of about 22 cents for the current quarter, falling short of estimates of 23 cents, according to data compiled by LSEG. "While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year," said Carnival CEO Josh Weinstein in a statement. Economic uncertainty arising from U.S. President Donald Trump's recent tariff policy could further increase inflation and hinder consumer willingness to spend more on discretionary activities. The company expects fiscal 2025 adjusted earnings per share of about $1.83, compared with its previous forecast of about $1.70 per share. On an adjusted basis, Carnival reported a profit of 13 cents per share for the first quarter ended February 28, compared with analysts' average estimate of 2 cents. The company posted quarterly revenue of $5.81 billion, compared with analysts' average estimate of $5.75 billion. Sign in to access your portfolio
Reuters
21-03-2025
- Business
- Reuters
Carnival raises annual profit forecast on strong cruise demand
March 21 (Reuters) - Cruise operator Carnival Corp (CCL.N), opens new tab raised its annual profit forecast and beat estimates for first-quarter profit and revenue on Friday, helped by higher ticket prices as well as strong advance bookings and on-board customer spending. Even though cruise ticket prices have ticked up in recent years, Americans have been more than willing to make early bookings for their getaways during the promotions-heavy "wave season", which started in January, and are also splurging heavily during their voyages. This helped Carnival counter the rising costs of operations, including fuel and dock expenses and promotional costs. However, Carnival shares fell about 5% in early trading after the company forecast adjusted earnings per share of about 22 cents for the current quarter, falling short of estimates of 23 cents, according to data compiled by LSEG. "While we are not completely immune from the heightened macroeconomic and geopolitical volatility since providing our December guidance, we are still taking up our earnings expectations for the year," said Carnival CEO Josh Weinstein in a statement. Economic uncertainty arising from U.S. President Donald Trump's recent tariff policy could further increase inflation and hinder consumer willingness to spend more on discretionary activities. The company expects fiscal 2025 adjusted earnings per share of about $1.83, compared with its previous forecast of about $1.70 per share. On an adjusted basis, Carnival reported a profit of 13 cents per share for the first quarter ended February 28, compared with analysts' average estimate of 2 cents. The company posted quarterly revenue of $5.81 billion, compared with analysts' average estimate of $5.75 billion.
Globe and Mail
18-03-2025
- Business
- Globe and Mail
Analysts Love These 3 Bargain Stocks Right Now
The ongoing volatility surrounding the equity markets allows you to buy quality companies at a discount and benefit from outsized gains when investor sentiment improves. In this article, I have identified three undervalued stocks that analysts are bullish on right now. Bargain Buy #1: United Airlines United Airlines (UAL) reported strong fourth-quarter earnings, with earnings per share of $3.26, above expectations, and a pretax margin of 9.7%, up 3.5 points year-over-year. The airline delivered full-year EPS of $10.61, within its original guidance range of $9-$11. CEO Scott Kirby highlighted 'structural and durable' industry changes favoring United, including cost convergence and effective revenue diversity. International flying, particularly Pacific routes, showed strong performance, with Pacific PRASM up 4.1% in Q4 after being down 15.7% in Q3. For 2025, United expects EPS between $11.50 and $13.50, representing 18% growth at the midpoint. The airline forecasts Q1 EPS between $0.75 and $1.25, suggesting an improvement of $400 million compared to the year-ago period. United Airlines plans to take delivery of 71 narrow-body and 10 wide-body aircraft in 2025, with capital expenditures below $7 billion due to OEM production delays. In 2024, United generated $3.4 billion in free cash flow and reduced its net leverage to 2.4 times. Looking ahead, United is accelerating the installation of Starlink internet service and investing in its MileagePlus program, which grew 12% in 2024 and plans to grow even higher this year. Out of the 21 analysts covering UAL stock, 20 recommend 'Strong Buy' and one recommends 'Moderate Buy.' The average target price for UAL is $131.75, indicating an upside potential of 77% from current levels. Bargain Buy #2: Carnival Carnival (CCL) delivered strong Q4 results, exceeding expectations. Net income improved by over $250 million year-over-year and came in $125 million better than anticipated. CEO Josh Weinstein cited robust demand as the primary driver, pushing yields, per diems, EBITDA, and operating income to new record highs. Full-year 2024 revenue reached an all-time high of $25 billion, generating record cash from operations of nearly $6 billion. Yield growth for 2024 came in at 11%, significantly above the initial guidance of 8.5%, with the majority attributed to higher prices. Onboard spending accelerated sequentially each quarter throughout the year. For 2025, Carnival forecasts yield growth exceeding 4%, outpacing unit cost growth of approximately 3.7%. Already two-thirds booked for 2025, the company reports higher price and occupancy for all four quarters compared to the same time last year. Carnival reduced debt by over $8 billion from its January 2023 peak, ending 2024 with $27.5 billion in debt and achieving a 4.3 times net debt to EBITDA ratio. It expects to reach investment-grade leverage metrics of 3.5 times by 2026. Out of the 23 analysts covering CCL stock, 17 recommend 'Strong Buy,' one recommends 'Moderate Buy,' four recommend 'Hold,' and one recommends 'Strong Sell.' The average target price for CCL is $29.17, indicating an upside potential of 50% from current levels. Bargain Buy #3: Synchrony Financial Synchrony Financial (SYF) reported Q4 net earnings of $774 million, or $1.91 per diluted share, delivering a return on assets of 2.6% and a return on tangible common equity of 23%. For 2024, the company generated net earnings of $3.5 billion or $8.55 per diluted share, with a return on assets of 2.9% and a return on tangible common equity of 27.5%. Synchrony Financial added five million new accounts in Q4, generating $48 billion in purchase volume despite tighter credit actions implemented between mid-2023 and early 2024. Ending loan receivables grew 2% to $105 billion as payment rates moderated, decreasing approximately 10 basis points compared to last year. Net revenue grew 4% to $3.8 billion, driven by higher interest and fees and other income, partially offset by increased retailer share arrangement and interest expense. The 30-plus-day delinquency rate improved to 4.70%, down four basis points year-over-year, showing the effectiveness of the company's credit actions. For 2025, Synchrony expects low-single-digit loan receivables growth and forecasts net revenue between $15.2 billion and $15.7 billion. It projects its net charge-off rate to improve to between 5.8% and 6.1%, down from the current 6.45%. Out of the 22 analysts covering SYF stock, 14 recommend 'Strong Buy,' one recommends 'Moderate Buy,' six recommend 'Hold,' and one recommends 'Strong Sell.' The average target price for SYF is $77.62, indicating upside potential of over 55% from current levels.
