Carnival Corp Shares Edge Up Ahead Of Q1 Results: Retail Interest Muted
Cruise operators, including Carnival, Royal Caribbean Group (RCL), and Norwegian Cruise Line Holdings (NCLH), reported broadly strong revenue and profit growth last year, driven by robust demand and higher pricing.
FollowCarnival Corp (CCL) shares gained ahead of the cruise line operator's fiscal first-quarter results announcement on Friday, even as retail interest remained muted.
The company's adjusted sales is expected to rise 6.2% to $5.74 billion for the three-month period ended February, according to a consensus estimate from Koyfin.
Adjusted earnings per share is seen at $0.02. Cash from operations is expected to be 20.5% lower at $1.41 billion.
Shares of Carnival were up 0.24% in premarket trading on Thursday, after closing 4.6% higher at $21.05 a day prior.
Cruise operators, including Carnival, Royal Caribbean Group (RCL), and Norwegian Cruise Line Holdings (NCLH), reported broadly strong revenue and profit growth last year, driven by robust demand and higher pricing.
According to their latest commentary, these companies have strong advanced bookings for 2025, indicating positive trends for the sector.
In its Q4 results published in December, Miami, Florida-based Carnival reported quarterly revenue of $5.94 billion and adjusted profit of $0.14, beating Wall Street expectations on both parameters.
Following the report, Morgan Staley raised the price target on the stock to $22 from $20 and Truist bumped it by $1 to $30. They have ‘underweight’ and 'hold' ratings, respectively, on the stock.
Currently, more than half of the analysts have a 'hold' rating on the stock, with an average price target of $21.05, according to Kiyfin data.
On Stockwits, the sentiment among retail investors improved slightly but held in the 'neutral' territory.
Several users posted assumptions that Carnival will report better-than-expected results and the stock will trade higher.
Last week, Barclays said the recent selloff in cruise line stocks was overdone, according to Investing.com.
The research firm recommended Royal Caribbean and Carnival, which it said benefit from "drive-to mix and most attractive/inherent value propositions to the consumer."
Carnival shares ended Wednesday at $21.05, down 15.5% year to date.
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