Carnival (NYSE:CCL) 16.16 + 10.84% Friday, is sailing smoothly despite a mixed Q-2 earnings report. The cruise line reported a sizeable adjusted loss of 3.30/share, which was worse than expected. The Good News was that revenue was better than expected.
Today, investors are more interested in the general outlook from Carnival and how quickly the cruise industry will get back to normal, rather than earnings.
On that front, CCL offered good reasons for optimism, as follows:
- CCL reiterated that its AIDA segment will resume cruise operations from ports in Germany beginning August 2020.
- AIDA is expected to be the 1st of the company’s 9 cruise brands to resume guest cruise operations.
- Despite substantially reduced marketing, the company says it continues to see demand from new bookings for Y 2021.
- For the 1st 3 wks in June, almost 60% of Y 2021 bookings were new bookings, as opposed to people cashing in credits from cancelled cruises.
- Cumulative advanced bookings for Y 2021 capacity currently available for sale remain within historical ranges at prices that are down in the low to mid-single digits range.
CCL is very oversold in here, so put it on the Watch List, because the world reopens CCL will break out above the Key resistance at 17.81 and head for 50/share back where it began Y 2020.
Carnival Corporation & Plc operates as a leisure travel company. The company’s ships visit approximately 700 ports under the Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names.
It also provides vacations to various cruise destinations, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches.
The company sells its cruises primarily through travel agents and tour operators. It operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally.
As of 28 January 2020, the company operated 105 ships with 254,000 lower berths.
Carnival Corporation & Plc was incorporated in Y 1972 and is HQ’d in Miami, Florida.
Have a healthy week, Keep the Faith!
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