CC

Carnival Corporation Ltd. stock research

Nov 30, 2024

FY2024 Q4

Carnival (CCL) Gross Margin — Quarter Ended Nov 30, 2024

Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined but at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, cost of revenue rose less proportionally, and gross margin improved.

Gross margin takeaway

Quarter ended Nov 30, 2024 · FY2024 Q4

Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined but at a slower pace, resulting in a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, cost of revenue rose less proportionally, and gross margin improved.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue from the prior quarter, weakening gross margin. From the year-ago quarter, revenue grew faster than cost of revenue, strengthening gross margin.
  • Compared to the immediately preceding quarter, gross margin is lower, reflecting a larger relative decline in revenue versus cost of revenue. Compared to the same quarter one year earlier, gross margin is higher, as revenue growth outpaced cost of revenue growth.

Gross margin snapshot

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

Gross margin

35.4%

Gross profit

$2.1B

Revenue

$5.9B

Cost of revenue

$3.8B

Quarter-over-quarter change

-10.1 pts

Year-over-year change

+2.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Feb 29, 2024$5.4B$1.7B$3.7B31.5%
May 31, 2024$5.8B$2.0B$3.8B34.3%
Aug 31, 2024$7.9B$3.6B$4.3B45.5%
Nov 30, 2024$5.9B$2.1B$3.8B35.4%

Quarterly comparisons

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

Previous-quarter change

Aug 31, 2024

-10.1 pts

Year-over-year change

Nov 30, 2023

+2.7 pts

What the margin says

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

The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue from the prior quarter, weakening gross margin. From the year-ago quarter, revenue grew faster than cost of revenue, strengthening gross margin.

Compared to the immediately preceding quarter, gross margin is lower, reflecting a larger relative decline in revenue versus cost of revenue. Compared to the same quarter one year earlier, gross margin is higher, as revenue growth outpaced cost of revenue growth.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its slower decline versus revenue contributed to the sequential margin weakening.