Carnival Corp. (NYSE:CCL) announced an improvement in its second-quarter financial results, with net income increasing by nearly $500 million compared to the same period in 2023.
The company reported adjusted earnings per share (EPS) of $0.11, surpassing the analyst consensus of -$0.02, and a record revenue of $5.78 billion for the quarter, exceeding expectations by $100 million and marking a substantial YoY increase.
The earnings and revenue beat drove Carnival's shares up by 4%. The company also reported a nearly fivefold increase in second-quarter operating income to $560 million and record revenues that significantly outpaced the previous year's levels.
Carnival's CEO, Josh Weinstein, attributed the strong quarter to the company's strategic efforts in improving commercial operations and growth plans.
"We closed yet another quarter delivering records, this time across revenues, operating income, customer deposits, and booking levels, exceeding our guidance on every measure," Weinstein said.
The company's record second quarter was driven by higher ticket prices, increased onboard spending, and the timing of expenses between quarters.
Looking ahead, Carnival raised its full year 2024 net yield guidance to approximately 10.25% on strong demand, with a projected adjusted net income of about $1.55 billion, which is $275 million above the March guidance.
For the third quarter of 2024, the company expects net yields to rise approximately 8.0% compared to 2023, with adjusted net income anticipated to grow by 35%.
Weinstein expressed confidence in the company's trajectory, stating, "With two years remaining, it certainly gives us even more conviction in achieving our three 2026 SEA Change targets after just one year."
Carnival also said customer deposits hit an all-time high of $8.3 billion, surpassing the previous record by $1.1 billion. The company's cumulative booked position for the remainder of 2024 and full year 2025 "continues to be the best on record in both price and occupancy."
Carnival's strategic portfolio optimization, including the integration of P&O Cruises (Australia) into Carnival Cruise Line, is set to further enhance operational efficiencies and performance in the South Pacific.