Carnival: Positive Trajectory
- Carnival reported FQ2'22 results showing a positive trajectory in the business, though far from perfect.
- The cruise line indicated strong booking trends for 2023 as consumers are able to plan for trips without worries of travel restrictions.
- The stock is cheap at $10 with normalized earnings at $3 per share, as debt is repaid and interest expenses are cut.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
In no huge surprise, Carnival Corp. () reported a quarter of improving results. The largest cruise line didn't report a perfect quarter, but the company and the sector continues to head backinvestment thesis
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Update - June 29
Bizarre and inappropriate panic caused by MS analysts making the claim CCL could fall to $0 on another demand shock. In addition, Carnival just talked about strong bookings, so this call is far off base. -Carnival Corporation (NYSE:CCL) fell sharply in early trading after Morgan Stanley slashed earnings estimates.-Analyst Jamie Rollo and team reduced the FY22 EBITDA forecast to -$900M from $900M, which would mark a third straight year of losses for the cruise line operator. The FY23 EBITDA forecast was reduced to $5.0B on the expectation for weaker pricing/occupancies and elevated costs.