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Carnival and its peers had to do a lot of things to remain in business during the pandemic shutdown. The industry was unable to access needle-moving government aid given the foreign-flagged nature of its ships sailing in international waters. It had to issue stock at desperately low price points, weighing on its per-share profitability. Its long-term debt would go on to more than triple, peaking at nearly $33 billion a year ago. 20 equities research analysts have issued 1-year target prices for Carnival Co. &'s shares.
All Carnival Corporation Brands Participate
Before that, Carnival and its predecessors had paid quarterly dividends since 2001. Profitability is the most critical factor determining whether a company can grow shareholder value over the long term. Typically, a company's stock price rises along with its earnings. Net revenue, prior to the COVID-19 pandemic, peaked out at over $6.5 billion annually.
CCL Stock Analysis - Frequently Asked Questions
However, the company is righting the ship by reducing its debt and improving profitability. Unfortunately, the pandemic has significantly affected Carnival's financial results. As of mid-2023, the cruise line operator had yet to return to profitability. Through the first six months of the year, the company reported a net loss of $563 million, or $3.02 per share.
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Carnival's guidance last month called for an adjusted profit of $1.28 billion, or $0.98 a share. This finds Carnival trading for just 14 times this year's earnings. Shares of Carnival stock cost around $15.50 a share in mid-2023. It would cost about $1,550 to buy 100 shares of Carnival stock at that price point. Buying at least 100 shares has a notable shareholder benefit.
Smooth sailing
According to ETF.com, 141 ETFs held more than 96.7 million shares of the cruise line as of mid-2023. You need to take a few steps before buying shares in Carnival (or any other stock). Here's a step-by-step guide to adding the cruise stock to your portfolio.
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The company operates 87 ships visiting more than 700 ports worldwide and catering to nearly 13 million passengers each year. The horizon gets even more snapshot friendly if you look out even longer. Analysts have been jacking up Carnival's fiscal 2025 prospects with every passing quarter. Wall Street pros are now modeling adjusted earnings of $1.42 a share for the next fiscal year that starts in December. Yes, the slide in Carnival's stock this year finds it now fetching just 10 times next fiscal year's profit target. An alternative to investing directly in Carnival by purchasing shares is to consider passively investing in the company through an exchange-traded fund (ETF) that holds shares.
The company had to sell stock and issue debt to stay afloat. You can buy shares of Carnival directly through any brokerage account. The cruise ship operator trades under the stock ticker CCL. 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.
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Shares of Carnival Corp. (CCL 4.27%) more than doubled last year. The world's largest cruise line operator isn't exactly coasting in 2024, down 23% so far this year. The SPDR S&P 500 ETF Trust (SPY 1.11%) was the largest holder at nearly 100 million shares. However, the S&P 500 ETF had a tiny allocation at 0.04% of the fund's total holdings, so there are better ways to gain exposure to Carnival. Once you complete the order page, click to submit your trade and become a Carnival shareholder.
Carnival vs Royal Caribbean: which is the best cruise stock to buy? - Invezz
Carnival vs Royal Caribbean: which is the best cruise stock to buy?.
Posted: Mon, 22 Apr 2024 06:33:24 GMT [source]
Carnival Shareholder Benefit Recap Video
Although they have lots of upside potential, they also have lots of risk. The Defiance Hotel, Airline, and Cruise ETF (CRUZ 1.22%) 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. Carnival Corp. (CCL) is one of the largest leisure travel companies in the world. It operates global cruise lines including its leading Carnival Cruise Line brand, as well as Princess Cruises, Seabourn, P&O Cruises, Cunard, and others.
Carnival on Friday morning reported $1 billion in principal payments so far for 2022 and a total of $9 billion due by 2025. Carnival said bookings improved 15 percentage points from the prior quarter to 84%. That compares with 54% occupancy during the same period in 2021. Despite governments relaxation of pandemic-era protocols in both the U.S. and, more recently, Canada, the company is projecting fourth-quarter bookings below 2019 levels — at lower prices. 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.
For current $CCL stock price information, refer to Google Finance. HL accepts no responsibility for its accuracy and you should independently check data before making any investment decision. Neil Patel and his clients have no position in any of the stocks mentioned. It might be smooth sailing for Carnival right now, but there are always rough waters to worry about.
Carnival Stock Gains as Company Posts Record Revenue, Cheery 2024 Outlook - Investopedia
Carnival Stock Gains as Company Posts Record Revenue, Cheery 2024 Outlook.
Posted: Thu, 21 Dec 2023 08:00:00 GMT [source]
The stock closed at a new 52-week low of $7.03, below its pandemic plunge lows of April 2020, when shares traded around $7.80 intraday. 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.
It also faces competition from the broader travel and tourism industry, including resorts, casinos, and theme parks. For FY 2021, ended Nov. 30, 2021, Carnival reported a net loss of $9.5 billion on revenue of $1.9 billion. The Company’s segments include North America and Australia (NAA) cruise operations, Europe and Asia (EA) cruise operations, Cruise Support, and Tour and Other. NAA cruise operations include Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), and Seabourn. The EA segment includes Costa Cruises (Costa), AIDA Cruises (AIDA), P&O Cruises (UK) and Cunard. Cruise Support segment includes its portfolio of port destinations and other services, all of which are operated for the benefit of its cruise brands.
That might have you interested in investing in the cruise stock. Here's a step-by-step guide on how to invest in its shares and some things to consider before buying. Carnival has been working hard to shore up its financial foundation since it resumed cruises in the middle of 2021.
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