By Katherine Hamilton

Carnival is scheduled to report first-quarter financial results before the market opens on Friday. Here is what you need to know.

REVENUE: The cruise line is expected to report $5.75 billion in sales, up from $5.41 billion in the previous second quarter, according to FactSet.

NET INCOME: The Miami, Fla., company is expected to swing to a profit of 2 cents a share, compared with a loss of 17 cents a share the year before, according to FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, adjusted earnings are expected to come in at 2 cents a share, up from the loss of 14 cents a share the prior year.

The stock rose 5% during the quarter and recently traded around $21.06.

WHAT TO WATCH

Consumers are getting more cautious about travel spending, as evidenced by Delta earlier this month lowering guidance due to declining demand. For Carnival, that could translate to a more disappointing outlook with fewer bookings or more cancellations.

For now, cruise demand looks like it's staying strong. If demand does dive, it likely wouldn't dent Carnival's first-quarter earnings because travelers usually book cruises up to nine months in advance, Deutsche Bank analysts said.

Carnival shares have fallen 20% in the past month due to falling investor confidence in the travel industry, but cruise lines such as Norwegian and Royal Caribbean have said there is no detectable change in demand so far as high-income customers are continuing to book trips, JPMorgan analyst Matthew Boss said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

March 19, 2025 15:17 ET (19:17 GMT)

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