2024-04-03 11:31:42 ET
Summary
- Carnival Corporation reported record revenues for Q1 due to strong post-COVID demand for ocean-going cruises.
- The cruise line company exceeded both top and bottom line estimates for the quarter.
- Large amount of financial debt is likely to remain a weight on the company's shares.
- While the industry outlook is positive, I don't see much upside for Carnival.
Carnival Corporation ( CCL ) reported solid results for its first quarter last week due to strong demand for leisure activities post-COVID. The cruise line company is also benefiting from strong booking and pricing trends which indicate solid revenue and EBITDA growth potential in FY 2024. While the outlook for the cruise line industry is not too bad, a major re-pricing post-pandemic has already occurred and the company's large debt remains a concern going forward. As a result, my rating for Carnival after the release of first-quarter results at the end of March remains unchanged at hold!...
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Carnival: The Juice Is Not Worth The Squeeze