CC

Carnival Corporation Ltd. stock research

May 31, 2023

FY2023 Q2

Carnival (CCL) Gross Margin — Quarter Ended May 31, 2023

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit turned positive from a loss a year ago and rose sequentially, while cost of revenue also increased, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended May 31, 2023 · FY2023 Q2

Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit turned positive from a loss a year ago and rose sequentially, while cost of revenue also increased, resulting in a higher gross margin.

  • The strongest observable margin driver was the substantial improvement in gross profit, which moved from a loss to a profit, outpacing the growth in revenue and cost of revenue.
  • Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin improved significantly from a negative figure to a positive one.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

29.6%

Gross profit

$1.5B

Revenue

$4.9B

Cost of revenue

$3.5B

Quarter-over-quarter change

+4.3 pts

Year-over-year change

+41.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Feb 28, 2023$4.4B$1.1B$3.3B25.3%
May 31, 2023$4.9B$1.5B$3.5B29.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Feb 28, 2023

+4.3 pts

Year-over-year change

May 31, 2022

+41.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the substantial improvement in gross profit, which moved from a loss to a profit, outpacing the growth in revenue and cost of revenue.

Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin improved significantly from a negative figure to a positive one.

Monitor the relationship between revenue growth and cost of revenue growth in upcoming quarters.