Adjusted net income of $1.18b, or 86 cents per share, was above guidance and Wall Street's 75-cent expectation. US GAAP net income was $1.07b, or 79 cents per share. It was the first time since cruise operations resumed that net income turned positive.
Revenues hit an all-time high of $6.9b, topping the $6.69b consensus forecast.
Occupancy was 109%, better than the company's expectations and a return to historical levels.
2023 guidance goes up but loss still forecast
Continued strength in close-in demand enabled Carnival to increase its net per diems guidance for full year 2023 by one point, to up approximately 7% compared to 2019 in constant currency. For the full year, EPS is guided in the range of a loss of 12 cents to a loss of 4 cents per share, lower than Wall Street's 16-cent loss consensus.
Elevated booking volumes
The company said booking volumes during Q3 and September continued at significantly elevated levels. Carnival's cumulative advanced booked position for full year 2024 is well above the high end of the historical range at higher prices in constant currency than 2023 levels.
This has helped further extend the booking curve, with North American brands exceeding historical highs and European brands essentially achieving pre-pause levels.
Record customer deposits
Total customer deposits reached a third record of $6.3b, surpassing the previous Q3 high of $4.9b in 2019 by 28%.
Carnival now expects fuel consumption per available lower berth day for full year 2023 to be nearly 16% lower than 2019, better than previously expected.
'We delivered over $1 billion to the bottom line with revenue reaching an all-time high,' Carnival Corp. CEO Josh Weinstein said. 'Both revenue and earnings significantly exceeded expectations this quarter enabling us to take up expectations for the year.'
This outperformance was driven by 'strength in demand, with both our North America and Australia segment and Europe segment equally outperforming expectations. It is gratifying to see the power of our portfolio deliver, as our continental European brands have stepped up nicely,' Weinstein continued.
He reported demand generation efforts are working across all regions, 'as we have consistently been achieving quarterly net per diems well in excess of 2019 levels, while closing the occupancy gap by 11 points over the course of the year.'
Weinstein added: 'I continue to be encouraged with our revenue trajectory heading into next year as we see no signs of slowing from our consumers.'
2024 booked position
Carnival's booked position for 2024 is 'further out than we have ever seen and at strong prices,' Weinstein said. 'With less remaining inventory to sell, despite a 5% increase in capacity, we are well positioned to drive pricing higher and deliver strong yield improvement in 2024.'
2023 numbers
For the full year, Carnival expects adjusted EBITDA of $4.1b to $4.2b, within the June guidance range, despite the $125m net unfavorable impact from fuel price and currency from June guidance, and 100% or higher occupancy.
Net per diems in constant currency are forecast up approximately 7% compared to 2019, one point higher than the midpoint of June guidance, based on the continued strength in close-in demand.
Adjusted cruise costs excluding fuel per ALBD in constant currency are projected at the high end of June guidance range, while fuel consumption per ALBD is seen to be nearly 16% lower than 2019, better than previously expected
Q4
Carnival forecasts adjusted EBITDA of $800m to $900m, net yields in constant currency up mid-single digits compared to 2019 with occupancy in line with historical levels and net per diems in constant currency up 7% to 8% compared to 2019.
Th eompany projects a Q4 loss of 18 cents per share to a loss of 10 cents per share, higher than the consensus expectation of a 1-cent per share loss.
$5.7b liquidity
Carnival reduced its debt by nearly $4b from the Q1 2023 peak and ended Q3 with $5.7b of liquidity.
See also 'Carnival doesn't rule out fuel surcharge or hedging — but no plans for either' and 'Carnival shares fall 5% on mixed 2024 outlook'
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