Carnival Corporation Pre-earnings Analysis
Chart done on daily timeframe. Carnival investors are preparing for the company’s quarterly earnings last this month. The attention will likely be on their ability to meet profit expectations because they struggled to stay positive in 2023. Their quarter over quarter earnings shifted from negative to positive and back to negative again last year so there’s a lot of uncertainty going into these earnings. Although it seems like a lifetime ago, but the pandemic’s toll is still weighing on cruise lines, but they have generally been moving in the right direction. Despite the profit inconsistency, the company’s revenue grew by nearly 100% from 2022 to 2023, reaching about 21B for the year. The company’s entire valuation is about 21B, so they are earning also much revenue as their market value, which could spark some interest. If CCL does well on these earnings, especially in profitability and guidance, it will likely finally breakout of the channel it has created all year long.
Option chain analysis:
CCL’s earnings are set for the 27th. The next option expiration after that is set of the 28th, which currently reflects a 95% implied volatility. That translates to about a $1.75 move.