Carnival Corporation: On A Cruise

Summary:

  • Carnival Corporation’s shares have doubled as the company is now reaching realistic break-even levels (on an annual basis).
  • This achievement and strong momentum make investors upbeat.
  • I am upbeat on the developments too, but investors have incurred a lot of dilution while the balance sheet still shows a big hole.
  • Potential from here has to come from continued strong operating momentum, as the question is if momentum has been carried away a bit too much here.

Caribbean cruise

Joel Carillet

At the end of March I noted that Carnival Corporation (NYSE:CCL) was plugging the leak as the 2023 guidance suggested that the company could turn break-even, even after accounting for steep interest expenses. Positively surprised by this observation, I believed


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service, we cover major earnings events, M&A, IPOs, and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!

Leave a Reply

Your email address will not be published. Required fields are marked *