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CCL slipped 0.5% in premarket trading Wednesday, after the cruise operator reported an narrower-than-expected fiscal first-quarter loss but also said it expected the collapse ... You can buy shares of Carnival directly through any brokerage account. The cruise ship operator trades under the stock ticker CCL. Carnival has been working hard to shore up its financial foundation since it resumed cruises in the middle of 2021. It has been steadily repaying debt and plans to continue doing so. It also continues to invest money to refine its fleet, which will see eight new ships delivered across its brands through 2025.
Carnival Corp.
But that's a huge burden that adds tremendous financial risk should there be economic weakness. It's easy to say this with the benefit of hindsight, but I don't necessarily think it's shocking to see Carnival putting up such strong numbers right now. Unless you were convinced that demand for cruise travel would permanently fall off a cliff, I bet you expected that this business would experience a reversion to the mean. Carnival's business is giving its shareholders plenty of reasons to be optimistic. In fiscal 2023, which ended Nov. 30, the company reported revenue of $21.6 billion, a record figure that was up 77% year over year.
Carnival Freedom cruise ship catches fire for second time in less than 2 years
The cruise operator said it expects the disruption to hit annual adjusted earnings by as much as $10 million. According to 20 analysts, the average rating for CCL stock is "Strong Buy." The 12-month stock price forecast is $21.0, which is an increase of 47.06% from the latest price. However, the company is also trying to repay the debt it took on during the pandemic. It will take the company several years to get debt back down to a more comfortable level. That's hindering its ability to grow shareholder value through dividends, share repurchases, and new investments.
NYSE: CCL
There are exemptions for children under age 12 (there isn't an authorized vaccine available for this age group yet). And there are exemptions for adults with certain medical conditions. Speaking of the economy, demand for cruise trips demonstrates cyclicality, as it's a discretionary purchase. I'm concerned about how Carnival will fare in a potential recessionary scenario, which could happen unpredictably.
The cruising we used to know
On average, they anticipate the company's share price to reach $21.47 in the next year. This suggests a possible upside of 50.3% from the stock's current price. View analysts price targets for CCL or view top-rated stocks among Wall Street analysts. The Defiance Hotel, Airline, and Cruise ETF (CRUZ 1.61%) had a much more meaningful allocation of Carnival stock. It was the fund's fourth-largest holding at 7% of the total, making it a better means of gaining passive exposure to the cruise ship operator and other travel and tourism stocks.
The cruise line company ceased operations for several months, which had a devastating financial impact. The company had to sell stock and issue debt to stay afloat. 20 Wall Street analysts have issued twelve-month target prices for Carnival Co. &'s stock. Their CCL share price targets range from $11.00 to $25.00.
CCL Stock News Headlines
Carnival or Royal Caribbean: Bank of America Chooses the Superior Cruise Stock to Buy - TipRanks.com - TipRanks
Carnival or Royal Caribbean: Bank of America Chooses the Superior Cruise Stock to Buy - TipRanks.com.
Posted: Mon, 08 Apr 2024 15:51:18 GMT [source]
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. Carnival Corporation & plc is a leisure travel company operating a fleet of cruise ships, hotels, and resorts with international destinations. Brands under the Carnival Corporation umbrella include Carnival Cruise Line, Princess Cruises, Holland America, P&O Cruises, Seaborn, Costa Cruises, AIDA Cruises, and Cunard. The company’s goal is to provide extraordinary vacations at an exceptional value. As of 2022, the company laid claim to nearly half of the global cruising market share with several new ships in the works. The Company, through a subsidiary also owns and operates hotels and lodges.
The original growth strategy included a festive atmosphere, features and amenities unlike any other cruise line at the time. Slow to start, the growth strategy shifted into overdrive in 1980 when Carnival shocked the world by building its own ship. The Tropicale became an iconic name in the cruising industry and sparked a wave of shipbuilding that is still underway. Carnival has undertaken several actions to improve profitability, which it expects to start achieving in the second half of 2023. In addition, it anticipates growing its adjusted free cash flow. That should enable the company to continue paying down debt.
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Before that, Carnival and its predecessors had paid quarterly dividends since 2001. It's too early to say how long this situation will last. It will be important to follow the rollout of vaccine booster shots. If boosters prove highly effective and coronavirus cases decline for a sustained period, we may see the light at the end of the tunnel.
At the same time, it will be important to keep an eye on Carnival's next earnings reports. These measures sound like good ways to halt the spread of the coronavirus. One of Carnival's ships sailing out of Texas this summer reported 27 cases in a two-week period, according to a CNBC report. For what it's worth, Wall Street believes the good times won't last very long. Analysts see annual revenue gains shrinking going forward, with fiscal 2026 sales rising by just 1.9% compared to the prior year. But this is a business that is recovering nicely from the worst days of the pandemic.
Typically, a company's stock price rises along with its earnings. Carnival (CCL 1.13%) is the largest cruise line in the world. The company operates nine cruise line brands with over 90 ships visiting more than 700 ports annually. Each day, more than 225,000 guests sail aboard its ships. In the most recent earnings report, Carnival said advanced bookings for 2022 cruises were "ahead of a very strong 2019." So first, a bit about share performance since this year's high point, reached on June 2.
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