Tuesday’s First Moves: CCL & KMX Rally on Earnings, NFLX Upgrade

Caribbean, Bloom Energy are the best performers. Let's get on to first moves after the op And we are joined now by George Silis taking look at one of these best performers. And we'll start off with Carnival Cruise Lines. The earnings. Good morning George. Good morning Nicole. Yea was actually a pretty good report for Carnival considering what's been goi with fuel prices. But theyctually beat their own guidance or EBITDA margins, which I'll talk about t overall sales, they posted 8.43 billion, beating the estimates, which are around 8.38 billion. So that was about 3.5% increase compared to last year, where they generated 8.15 billion. Adjusted EPS came in ahead of estimates. So pretty much flat compared to last year, $1.43 versus $1.35 estimate. But the biggest positive, I think, was yields. If you look at what they talked about net yields increased around 2.4%. But at the same time they did talk about fuel consumption increasing by about 3.8%. But full year guidance actually was improved quite significantly. Adjusted net income is actually now expected to be for the full year, around 3.8 billion. And on a constant currency basis, that isted to be higher by around 2.3%. So overall strong quarter. They talked about how adjusted EBITDA was growing, despite the fact that they demonstrated higher fuel price c They will pass it on to customers and bookings continue to increase as well to offset some of the higher expenses they incurred through through therter. You know, I think it's interesting that this came in on the heels what we heard from Royal into sandals. But a lot of then. analysts were hot oal Caribbean. And now we got this good news from Carnival where you see it up 10%. I mean, that's such a signt move. And Norwegian is alson the top ten on the S&P 500 today as well, gaining 4.5%. So really helping the cruise lines across the board, knowing about this booking occ and pricing at record levels. Let's get to CarMax. Let's look at those earnings please. George. Well different story for CarMax. You know looking at Carnival just They talk about how prices are at records wherex on the opposite, they actually demonstrated a pretty good report based on lower prices. They did sacrifice some margins, but nonetheless, they came in qu bit ahead of estimates, especially on volume. if you look at revenues for the quarter, around $7.8 billion, beating the consensus, which was 7.08 billion. So essentially beating the estimates by about $800 milliono last. And then EPS was a standout $1.16 versus the consensus, which was around $0.72. And now that was higher by 81%. So if you look at the combined unit growth, this is important. They they pos over 300 and 387 000 uni up 14.7%. If you look at the comp used units growth, they actually grew So the challenge for the quarter really was that retail gross ma were sacrificed because of moving inventory at lower prices. If ok at the retail gross profit per vehicle, it wasround $2,105. Now that was down about 11 $111 compared to last year's number. But the most important, I thiber is the comp sales, which increased by 13%. So the strategyhe business has really been moving inventory, reducing ong expenses. That's of course helping offsete margins. But nonetheless, they also talked about a sharebuybac. And overall, a really good report for CarMax, whi starting to recover quite nicely from the the lows. All right. Last but not least, can we check in on Netflix with the upgrade please Geo Yeah. So looking Netflix they got an adee for for Deutsche Bank. They moved their rating from buy to buy from hold.o they've increased their rating. But they did reduce their price target from 100 to 95. So the question really is is what's going on wit investor focus. So they say that most investors and other analysts this includes companies like HSBC and Wells Fargo, are looking at weaker U.S. engagement as a culprit or challenge for for Netflix. But now what what Deutsche Bank is l at, they actually see international growth as a real primary catalyst and maybe the weaker content engagement numbers are really a 1 or 2 quarter issue that can be resolved. So they're really looking at a structuralmprovement in total volume growth for for viewers, especialthe international front. Look, it's had a tough run because it has drorom that 1.34 high prior. You know, everybody used to talk about Faang except for Netflix, but it went from over the three years. It went 34 up to 134 and now h pulled back to around 70. But very interesting to hear this new price target 9,