Carnival Corp has raised its annual profit forecast for the third time, exceeding market expectations for third-quarter results. The company’s strong performance can be attributed to the high demand for cruise vacations and reduced operational costs. Cruise operators have seen a surge in demand for sea vacations during the summer, contributing to a successful year for the industry.
Carnival’s CEO, Josh Weinstein, highlighted the positive impact of strong demand on the company’s financial performance. The third-quarter revenue of $7.90 billion exceeded estimates, with gross margin yields growing by 19% compared to the previous year. The company also raised its 2024 adjusted profit per share expectation to $1.33, up from the earlier forecast of $1.18.
Despite the overall positive outlook, Carnival’s fourth-quarter earnings per share target of 5 cents fell below analyst estimates of 7 cents. As a result, the company’s U.S.-listed shares experienced a 2% decline during early market trading. Looking ahead, Carnival anticipates adjusted cruise costs, excluding fuel, to increase by about 8% in the current quarter due to additional maintenance days and higher advertising spending.
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