Carnival Corp. posted a profit for the first time since 2020 but issued a fourth quarter earnings outlook that missed Wall Streets’ expectations as higher fuel and currency costs weigh on its operations.
Adjusted earnings before interest, tax, depreciation and amortization costs will be $800 million to $900 million in the fourth quarter, Carnival said in a statement Friday morning. Analysts had expected $950 million on average.
“While we’ve experienced volatility in fuel prices before, there’s only been one other period in the last 15 years that our fuel price has been this level,” Chief Executive Officer, Josh Weinstein, said on the company’s earnings call.
The hit from currency headwinds and higher gas prices — which are expected to spike by 20% in the upcoming quarter — could hit the company’s full year outlook by as much as $130 million, Weinsten said.
Still, strong demand and record revenues in the third quarter should be more than enough to offset those unexpected expenses. Carnival maintained its 2023 view for EBITDA of $4.1 billion to $4.2 billion.
The strong sales came amid increased consumer demand for travel in America, which Carnival sees persisting. “I continue to be encouraged with our revenue trajectory heading into next year as we see no signs of slowing from our consumers,” Weinstein said.