Carnival Corporation (CCL) Post-Earnings Analysis
The travel bug is spreading in the U.S. following the pandemic years, and companies like Carnival are reaping the benefits. The company posted record revenue this quarter in its latest earnings report, citing strength in bookings. However, despite the impressive report, shares still fell in the days that followed. This could be due to their lackluster projections for Q4, which fell below estimates. However, those looking further ahead may see an opportunity in the stock.
While the company did lower its Q4 projections, it boosted its 2025 outlook, stating they expect another record year, surpassing 2024’s record. This is significant for the company, as it has already experienced double-digit percentage growth each quarter this year.
Carnival’s full-year revenue for 2023 was $21.6B, and this year’s revenue is expected to surpass that in the next report. This makes their $22.3B valuation extremely attractive, especially considering their full financial statements. With interest rates coming down, companies like Carnival will benefit from increased consumer demand and lower borrowing costs, further boosting their financial performance.
Technical Analysis:
Looking at the overall chart, the stock has been stuck in the same range for over a year, moving as low as $10.85 and getting rejected four times at $19.80. This makes $19.80 the key breakout point to watch. Buyers are likely to gradually enter the stock as they recognize its value, potentially pushing it to a new 2024 high.