: Carnival results beat expectations as demand keeps accelerating, but stock pulls back

Carnival Corp. CCL reported fiscal second-quarter results that beat expectations and provided an upbeat outlook, but the cruise operator’s shares dropped 8.6% in morning trading Monday after being headed for the biggest monthly gain in more than two years. Net losses for the quarter to May 31 narrowed to $407 million, or 32 cents a share, from $1.83 billion, or $1.61 a share, in the year-ago period. Excluding nonrecurring items, the adjusted per-share loss of 31 cents beat the FactSet loss consensus of 34 cents. Revenue rocketed 104.5% to a record $4.91 billion, above the FactSet consensus of $4.79 billion, as passenger ticket revenue soared 144.4% to $3.14 billion and onboard and other revenue increased 58.6% to $1.77 billion. Occupancy improved to 98% from 69%. Demand continued to accelerate as bookings during the quarter reached a record high for all future sailings. For fiscal 2023, the company raised its outlook for adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) to $4.10 billion to $4.25 billion from $3.9 billion to $4.1 billion. Meanwhile, the stock, which closed at a 13-month high on June 15, had soared 40.7% month to date through Friday, which would be the best monthly performance since it soared 43.3% in February 2021. The stock has rocketed 96.0% year to date through Friday, while the S&P 500 SPX has gained 13.3%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.