Carnival shares fall on ballooning costs, dragging cruise stocks lower

Table Of Content

• Port Canaveral (Orlando), FL
• Stocks That Will Be Hit Hardest by the 2024 Baltimore Bridge Disaster
• Industry, Sector and Symbol
• Carnival shares shed 23% on ballooning costs, dragging cruise stocks lower
• Cunard Officially Welcomes New Ship Queen Anne with Ceremony at Fincantieri Shipyard
• Wall Street Favorites: 3 Cruise Stocks with Strong Buy Ratings for April 2024

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. It is wonderful that Carnival is attracting customers who have never been on a cruise before.

Port Canaveral (Orlando), FL

With a strong year like that and a couple of concerns in January, it's not surprising to see it have a small 11% pullback.

Stocks That Will Be Hit Hardest by the 2024 Baltimore Bridge Disaster

While profits plateaued in 2019, they steadily grew in the years before then and had more than doubled their total from 2013. With the company working hard to improve earnings while growing its fleet, it could eventually set a new profitability record. Carnival has been bearing the brunt of high expenses for quite some time. During the fiscal first quarter, operating costs and expenses increased 12% year over year to $3.7 billion. Additionally, higher onboard revenues led to a $43 million increase in onboard and other cost of sales, while repair and maintenance expenses, including dry-dock costs, rose by $30 million.

Industry, Sector and Symbol

The company's world-class and steadily improving fleet puts it in a strong position to capitalize on robust and growing demand for cruising. Before the pandemic, global ocean cruise passengers had grown at a 5.5% compound annual rate from 2003 through 2019. The industry had gotten back on a growth trajectory in 2023, with Carnival reporting all-time highs in bookings and customer deposits in the year's second quarter. The leading cruise ship operator is benefiting from the growing demand for cruises.

The world's largest cruise company's commitment to sustainability and the enchanting beauty of Mahogany Bay in Roatan, Honduras, recognized with top environmental honor MIAMI , April 4, 2024 /PRNewswi... 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.

Carnival shares shed 23% on ballooning costs, dragging cruise stocks lower

World's largest cruise company finalizes agreement with Meyer Werft for new world-class cruise ship scheduled for delivery in 2028 MIAMI , March 26, 2024 /PRNewswire/ --  Carnival Corporation & plc (N... 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 ... 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... Carnival said bookings improved 15 percentage points from the prior quarter to 84%.

Cunard Officially Welcomes New Ship Queen Anne with Ceremony at Fincantieri Shipyard

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]

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. Additionally, geopolitical turmoil in the Red Sea is forcing Carnival and other cruise lines to reroute cruises that were scheduled to pass through there.

There are currently 1 sell rating, 2 hold ratings and 17 buy ratings for the stock. The consensus among Wall Street 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.

To put a number on that, a one-day ticket to Disney World runs around $150 per person. So a family of four would cost $600 just to walk into the park. 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. 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.

An entire cruise could cost $600 (or less) per person, and includes the cruise, food, and a room. Cruise ships are also including more and more amenities, like amusement-style rides, water parks, and sports facilities, to better compete for traveler's dollars. Carnival has been benefiting from a resurgence in demand for cruises following the effective industry shutdown during the early days of the coronavirus pandemic. But that demand isn't just coming from existing cruisers -- there's a whole new contingent of people who are experiencing cruising for the very first time.

Explore how you can make money from others' adventures, including the frontier of space travel. Carnival could complete a reverse stock split to help reduce its outstanding share count. The company is unlikely to resume paying dividends for the foreseeable future. Its primary focus is on shoring up its balance sheet following the pandemic. Either way, expect the volatility in Carnival stock to continue. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

Wiping them out gets it closer to a more sustainable debt burden. 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. Cruise companies across the board are struggling with massive debts taken on during Covid lockdowns, made more expensive by rising interest rates. Carnival on Friday morning reported $1 billion in principal payments so far for 2022 and a total of $9 billion due by 2025.

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. The company is scheduled to release its next quarterly earnings announcement on Monday, June 24th 2024. MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. In 2023, CCL's revenue was $21.59 billion, an increase of 77.46% compared to the previous year's $12.17 billion.

That's hindering its ability to grow shareholder value through dividends, share repurchases, and new investments. Although they have lots of upside potential, they also have lots of risk. Carnival stock plunged at the end of September after the company issued another disappointing earnings report and the stock sank to 30-year lows. 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.

However, the company suspended its dividend in March 2020 to conserve cash because of the pandemic's impact on its operations. Before that, Carnival and its predecessors had paid quarterly dividends since 2001. Wednesday's Fed rate hike also showed that a pivot is probably further away than Carnival investors had hoped. Travel demand should continue to come back, barring a recession, but a return to profitability will take longer.

New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company's weighted average against that of other companies. The cruise operator said it expects the disruption to hit annual adjusted earnings by as much as $10 million. Carnival Corp. has listed for sale its sprawling headquarters on the outskirts of Miami, seeking to cash in on real estate the cruise giant has owned for roughly three decades.

Complete Map of Carnival Fleet by Homeport & List of Ships

Table Of Content

• CCL-Carnival Cruise Line removes libraries from its ships
• Inaugural cruise itineraries 2022
• Fun for your whole crew
• Carnival Celebration Itineraries
• Miami
• Compare up to three ships below

Every one of our ships features its own unique twist on Carnival-style fun. And if you are looking for that funnel, we have just the map for you. With more than 20 ships in service, it can be tough to keep trap of which ships call which port home. In addition, the line regularly moves ships to ports around the country, making it even more difficult to know which ship is cruising from where. The Carnival Legend was recently employed on humanitarian efforts in St. Vincent. With the local volcano near eruption, the vessel helped evacuated the island residents, along with other cruise ships.

CCL-Carnival Cruise Line removes libraries from its ships

Carnival's roller coaster is all-electric and allows 2 riders to race along in motorbike-like vehicles at height 57 m (187 ft) above the sea. The experience features breathtaking top-deck 360-degree views and ends with a high-speed turn around the funnel/smokestack. That’s why below you will find the most comprehensive guide to Carnival Cruise Line ships. We look at where your favorite ships are right now, what the current plan is for the vessels, what the projected homeport(s) are, standard sailing areas, and when their return to service is scheduled. Set to reposition to Norfolk in 2025, the Carnival Sunshine continues to offer different itineraries departing from the Port of Charleston. In November, the ship’s schedule features four- to six-night cruises to The Bahamas, visiting Half Moon Cay, Bimini, Nassau, and more.

Inaugural cruise itineraries 2022

Carnival Paradise will be going for a dry dock period, after which she is scheduled to sail on November 1 on a Western Caribbean cruise from Tampa, FL. Carnival Radiance is currently scheduled to sail on a 3-day Baja Mexico cruise from Long Beach on November 5, 2021. After repatriating crew members to Asia and being laid up in Latin America, Carnival Panorama is currently preparing to return to service off the coast of Long Beach, California. Carnival Celebration plays a considerable role in the 50th-anniversary celebrations for Carnival Cruise Line.

Fun for your whole crew

The three- and four-night itineraries feature different ports of call, including Nassau, Bimini and Princess Cays. Sailing from Carnival’s private cruise terminal in Long Beach, the Carnival Radiance continues to offer short cruises to Mexico and California. The ship’s year-round program includes a series of three- and four-night itineraries to Catalina Island and Ensenada. The multimedia panels display relaxing scenes, unique global destinations and attractions, real-time day and night sky views. Sailing from PortMiami twice a week, the Carnival Conquest offers a series of short cruises to the Bahamas and the Western Caribbean.

As with all other "Fun Ships", the shipowner is Carnival Corporation - the world's largest passenger shipping company. Based in Australia on a year-round basis, the Carnival Splendor offers itineraries departing from the Port of Sydney. In August, the 2008-built vessel is set to sail three- to ten-night cruises to the South Pacific and the Australian coast. Continuing its inaugural season in North America, the Carnival Luminosa is offering seven-night cruises to Alaska and Canada. The ship’s regular itinerary includes calls to Ketchikan, Juneau and Skagway, in addition to scenic cruising at the Tracy Arm Fjord. Sailing from Norfolk during the summer, the Carnival Magic is offering cruises to Bermuda, the Bahamas and the Caribbean.

However, not all its vessels always are based in North America. Note that the shorter Bermuda sailings can offer very little time in the country, sometimes as little as eight hours. Carnival's fun-focused, affordable ships are a popular pick with families looking to visit Alaska during the short Alaska cruise season, which lasts roughly from May to September. Carnival is one of the leaders in cruises to the Mexican Riviera — the string of resort towns running down the west coast of Mexico. Carnival also offers a handful of longer, 10- to 14-night sailings in the Caribbean, but not many.

Decks and Cabins

In August, the six- and eight-night itineraries of the 3,650-guest feature visits to Grand Turk, San Juan, Bimini, King’s Wharf and more. Notably, Carnival is the only cruise line to base ships in Long Beach year-round for voyages to Mexico. One of the line's newest vessels, the 4,008-passenger Carnival Panorama, is based year-round in Long Beach for seven-night Mexican Riviera voyages. The smaller, 2,764-passenger Carnival Radiance operates three- and four-night trips out of Long Beach year-round to Mexico. Carnival is all about relatively short, affordable cruises from U.S. ports. You'll find at least one of its ships sailing out of pretty much every major port city around the country, but it's rare to find them based anywhere else.

August Update: Carnival Cruise Line Fleet Locations and Itineraries - Cruise Industry News

August Update: Carnival Cruise Line Fleet Locations and Itineraries.

Posted: Sun, 06 Aug 2023 07:00:00 GMT [source]

Miami

The overarching idea for Carnival's ship deployments is that a large percentage of the U.S. population can reach one of the line's ships by car, saving the cost of flights. For that reason, it takes a much broader approach to ship deployments around the U.S. than other lines. In 2021 (October-November) Carnival Sunshine was drydocked at Navantia Shipyard (Cadiz Spain), mainly for general maintenance (technical and routine) works and also repainting (received CCL's new livery).

With lockdowns, postponements, dry docks, changes in homeport, and cancelations, it can be hard to keep track of where your favorite Carnival Ships are now and where they will be sailing from next. Set to enter service in December, the new vessel is in final stages of construction at the Meyer Turku shipyard in Finland. Another Carnival ship spending the operational pause in the Bahamas, the Carnival Elation is currently near Little Stirrup Cay. In March 2020, the vessel arrived at the port for a major refit, which had work suspended soon after the pandemic started.

No cruise line is as large and well-represented in cruising as Carnival. The line is the largest in the North American market, with roughly two dozen ships sailing from ports across the United States, from Long Beach to Galveston to Miami to Baltimore to San Juan. Most of the sailings are six nights in length and include two days in Bermuda. The line also typically offers a few shorter four- and five-night Bermuda sailings and, occasionally, a longer seven-night Bermuda sailing.

Another ship used in crew repatriation, the Carnival Magic brought crew members back to Europe in 2020. The vessel has remained in Italy ever since along with other Carnival Corporation ships. Some cruise lines offer voyages to every corner of the world. The ship was officially delivered from Meyer Turku to CCL on November 2, 2022. The delivery ceremony was attended by Tim Meyer and Christine Duffy (CCL).

One of the first ships to sail, Carnival Liberty, will sail on a 3-day voyage to The Bahamas from Port Canaveral (Orlando), FL, on June 1, 2021. The LNG-powered vessel is expected to cross the Atlantic eventually, ahead of its inaugural cruise in the Caribbean. Mardi Gras will be sailing on a 7-Day Eastern Caribbean voyage from Port Canaveral (Orlando), FL, as her maiden voyage. Sailing from Carnival’s homeport in Long Beach on a year-round basis, the Carnival Panorama offers six- to eight-night cruises to the Mexican Riviera. Ports of call include not only Mazatlán, Puerto Vallarta and Cabo San Lucas, but also Ensenada and La Paz. All Carnival cruises go to great spots — what sets each ship apart is how it gets you there.