CC

Carnival Corporation Ltd. stock research

May 31, 2024

FY2024 Q2

Carnival (CCL) Gross Margin — Quarter Ended May 31, 2024

Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, reflecting a larger proportion of revenue flowing through to gross profit.

Gross margin takeaway

Quarter ended May 31, 2024 · FY2024 Q2

Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, reflecting a larger proportion of revenue flowing through to gross profit.

  • The strongest observable margin driver is the sequential increase in gross profit outpacing the sequential increase in cost of revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was slightly higher, leading to an improved gross margin. Versus the same quarter one year earlier, all three metrics were higher, and gross margin also improved.

Gross margin snapshot

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

Gross margin

34.3%

Gross profit

$2.0B

Revenue

$5.8B

Cost of revenue

$3.8B

Quarter-over-quarter change

+2.8 pts

Year-over-year change

+4.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Aug 31, 2023$6.9B$2.9B$3.9B42.8%
Nov 30, 2023$5.4B$1.8B$3.6B32.7%
Feb 29, 2024$5.4B$1.7B$3.7B31.5%
May 31, 2024$5.8B$2.0B$3.8B34.3%

Quarterly comparisons

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

Previous-quarter change

Feb 29, 2024

+2.8 pts

Year-over-year change

May 31, 2023

+4.7 pts

What the margin says

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

The strongest observable margin driver is the sequential increase in gross profit outpacing the sequential increase in cost of revenue.

Compared to the immediately preceding quarter, revenue and gross profit were higher while cost of revenue was slightly higher, leading to an improved gross margin. Versus the same quarter one year earlier, all three metrics were higher, and gross margin also improved.

Monitor the relationship between cost of revenue growth and revenue growth in upcoming quarters for potential changes in margin stability.