Carnival
Carnival
CCL
$1.36
7.5%
252%
IBD Stock Analysis
- Running up toward 19.55 official buy point
- Already clears 9.23 early entry from not-quite handle
- Strong earnings, guidance spur big move
Industry Group Ranking
Emerging Pattern
Cup
* Not real-time data. All data shown was captured at
12:05PM EST on
12/21/2023.
Carnival (CCL) is Thursday’s IBD Stock Of The Daysurging above an early entry in heavy volume after the cruise line giant reported better-than-expected fourth-quarter earnings and revenue. CCL stock is closing in on an official buy point as well.
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The cruise line company announced Thursday a fourth-quarter loss of 7 cents per share, compared to an 85-cent loss a year ago, with revenue growing 41% to $5.4 billion. Ahead of earnings, analysts forecast a Carnival loss of 13 cents per share and sales of $5.3 billion.
“We ended the year on a high note with another record-breaking quarter that exceeded expectations and achieved positive full year adjusted net income,” Chief Executive Josh Weinstein said in the earnings release.
Meanwhile, occupancy in the fourth quarter was more than 101%, in line with Carnival’s expectations and historical levels. Total customer deposits reached $6.4 billion, up 25% compared to last year.
2024 Guidance From CCL
“We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices,” Weinstein said. “We continue to experience strong bookings momentum across the board, with our European brands showing remarkable strength.”
For 2024, Carnival predicts adjusted EBITDA of approximately $5.6 billion, which would represent more than 30% growth compared to 2023. The cruise line giant also forecasts net yields growing around 8.5% with full year occupancy returning to historical levels.
In Q1 2024, the company predicts adjusted EBITDA of $800 million, more than double the first quarter of 2023, and net yields growth of 16.5%.
CCL Stock Performance
Carnival stock leapt 7.6% to 19.44 Thursday during market action in heavy volume. On Wednesday, Carnival shares sank 3.4% to 18.07. Ahead of Thursday trade, the travel stock surged 20% in December after vaulting 31% higher in November. The strong advance in November broke three consecutive monthly losses.
Carnival stock has formed a cup base with a 19.55 buy pointaccording to MarketSmith analysis. Shares are just below that official entry.
But investors could already use the Dec. 14 high of 19.23 as a slightly early entry from a not-quite handle.
SwingTrader added CCL stock on Thursday.
Carnival has surged 140% in 2023, handily outperforming the S&P 500 index.
At the end of September, Carnival topped Q3 earnings and revenue expectations, posting its first quarterly profit since before the Covid-19 pandemic. Carnival reported adjusted earnings of 86 cents per share then, compared to a loss of 58 cents per share last year. Revenues leapt 59% to an all-time record $6.85 billion. Carnival recorded $6.53 billion in revenue for Q3 2019, prior to the pandemic.
Cruise lines sailed higher in the first half of the year, driven by a wave of bookings as consumers cut loose to go on long-awaited vacations after pandemic lockdowns were lifted in 2022.
On Thursday, both Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH) rallied along with CCL stock. RCL gained 4%, extended from a buy area. NCLH advanced 5.2%, moving up the right side of a deep base.
Carnival stock has an 89 Composite Rating out of a best-possible 99. CCL stock also has a 96 Relative Strength Rating and a 74 EPS Rating.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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