Why Carnival Corp Stock Sank by Almost 11% in January The Motley Fool

Table Of Content

• Carnival cruise crew members help rescue 12 people from ocean after cargo vessel capsizes
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• SEABOURN UNVEILS 'THE COLLECTION': EXCLUSIVE CRUISES FEATURING UNIQUE SHORESIDE EXPERIENCES
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• Carnival Freedom cruise ship catches fire for second time in less than 2 years
• Carnival Warns of Profit Hit From Baltimore Bridge Collapse

Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Carnival Corporation said Wednesday the Francis Scott Key Bridge collapse in Maryland could have a negative effect on its full-year earnings to the tune of up to $10 million.

Carnival cruise crew members help rescue 12 people from ocean after cargo vessel capsizes

The company's largest ship is named Panorama and can accommodate more than 4,000 passengers. World's largest cruise company releases annual report detailing its global sustainability performance and progress, including surpassing several sustainability goals well in advance MIAMI , April 10, ... As it ended 2023, Carnival said that it was in its best booked position ever -- demand for cruises has been exceptionally high and it introduced 3.5 million people to cruises last year. And when it gave its update about the Red Sea, the company clarified things even further by saying that it's almost fully booked for its cruises in the first half of this year.

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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. At one point, Carnival was forced to halt its operations temporarily to prevent the spread of COVID-19. Revenue took a huge hit, dropping 91% between fiscal 2019 and fiscal 2021. The momentum carried over into the first quarter of 2024.

SEABOURN UNVEILS 'THE COLLECTION': EXCLUSIVE CRUISES FEATURING UNIQUE SHORESIDE EXPERIENCES

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. 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. Shares of cruise ship company Carnival Corp. (CCL 1.13%) sank by 10.6% in January, according to data provided by S&P Global Market Intelligence.

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Proceeds from the offering of senior unsecured notes and cash on hand to be used to redeem €500 million 7.625% senior unsecured notes due 2026; cash on hand to repay $800 million of the term loan faci... Net revenue, prior to the COVID-19 pandemic, peaked out at over $6.5 billion annually. 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 ... Carnival Corp. (CCL) shares turned higher in intraday trading Wednesday after the cruise line posted a smaller adjusted first-quarter loss than analysts expected. To be clear, I still believe Carnival is an extremely risky business to own. As of Feb. 29, the company had a massive debt load of $31 billion.

Royal Caribbean is leading the $61 billion cruise industry's comeback. This comes just a couple of years after a 15-month pandemic era shutdown led to questions about whether the industry could ever r... 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.

Coast Guard calls off search for missing Carnival cruise ship passenger

This would result in a reduction in interest expense on this outstanding debt of nearly 2%. Additionally, geopolitical turmoil in the Red Sea is forcing Carnival and other cruise lines to reroute cruises that were scheduled to pass through there. For Carnival, this meant rerouting 12 ships, which is more than some of its rivals. Unfortunately, there's a real cost to doing this -- management expects this will reduce its adjusted earnings per share (EPS) by $0.07 to $0.08 for the quarter.

Carnival’s 9 brands provide access to a wide range of cruising styles and destinations including the Caribbean, Alaska, Australia, New Zealand, Hawaii, England, and ports in Asia. The company is headquartered in Miami, Florida and has offices around the world. The company also has the distinction of being the only company included in both the S&P 500 and FTSE 250 indices. Carnival Cruise Line is the company’s largest brand serving guests on all coasts of North America. The brand's 22 ships make 1500 voyages per year with trips ranging from 2 days to 3 weeks and ports of call from the Caribbean to Alaska.

The market was potentially downbeat about a couple of factors. First, Carnival owns the Princess Cruises brand and its new largest ship, the Sun Princess, was scheduled to set sail in February. However, the ship won't be ready in time, forcing Carnival to reschedule and offer refunds and travel credits to those who had already bought tickets. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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.

During that 12-week stretch, the company hit a first-quarter record for sales. Key to this strong momentum is, without a surprise, robust demand from consumers. This cruise stock currently sits 80% below its peak price. That's even after shares soared 76% since the start of 2023 (as of April 18). A 28-year-old man reported missing aboard the Carnival Glory cruise ship on Monday prompted the U.S. Carnival CEO Josh Weinstein joins 'Money Movers' to discuss how the bridge collapse will affect Carnival's operations, security concerns in the Red Sea, and any sign of slowing demand.

Other cruise and travel stocks performed comparably during most of the month. However, Carnival stock dropped more than its peers later in the month, signaling something specific to the company. Carnival Corporation owns and operates cruise ships offering cruises to all major vacation destinations including North America, United Kingdom, Germany, Southern Europe, South America, and Asia Pacific. The Company, through a subsidiary also owns and operates hotels and lodges. The company expects to use the net proceeds from the Notes Offering, together with cash on hand, to redeem its 500 million euros 7.625% senior unsecured notes due 2026.

In 2023, CCL's revenue was $21.59 billion, an increase of 77.46% compared to the previous year's $12.17 billion. This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.

Insiders that own company stock include Arnold W Donald, David Bernstein and Randall J Weisenburger. Carnival Co. &'s stock was trading at $18.54 on January 1st, 2024. Since then, CCL shares have decreased by 23.0% and is now trading at $14.27.

Atypically high occupancy levels are helping Carnival's profitability and allowing it to reduce its substantial debt load at an encouraging pace. In fact, on Jan. 22 it announced that it had repaid all of its second-lien debt, which is great news. These notes weren't due until 2027, but they had a nearly 10% interest rate.

Carnival: Buy, Sell, or Hold? - The Motley Fool

Carnival: Buy, Sell, or Hold?.

Posted: Mon, 15 Jan 2024 08:00:00 GMT [source]

There are currently 1 sell rating, 2 hold ratings and 17 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "moderate buy" CCL shares. I don't believe investors should expect Carnival stock to more than double in 2024 like it did in 2023. Rather, I believe that investors should focus on the business. Two of the best things happening right now are the company's full ships and the speed of its debt repayment. If both of these things can continue throughout the next year and beyond, I'd feel good if I were a shareholder planning to hold for the long term.

Carnival Freedom continued on its current cruise itinerary after experiencing its second fire in less than two years, caught on passenger video Saturday. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 23 employees have rated Carnival Co. & Chief Executive Officer Arnold W. Donald on Glassdoor.com. Arnold W. Donald has an approval rating of 93% among the company's employees. This puts Arnold W. Donald in the top 30% of approval ratings compared to other CEOs of publicly-traded companies.