Carnival Corp (NYSE:CCL) delivered a better-than-anticipated performance for the first quarter, with revenue increasing by 22.1% year-over-year to $5.41 billion. Additionally, its net loss per share of $0.14 came in narrower than estimates by $0.04. However, shares of the leisure travel services company are under pressure today despite buoyant customer demand for its offerings.
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Buoyant Demand
The quarter was marked by strong demand trends and increased ticket pricing for CCL, with total customer deposits reaching a record $7 billion during this period. During the quarter, cruise costs per available lower berth day (ALBD) increased by 7.9% year-over-year. However, CCL’s adjusted EBITDA of $871 million came in nearly $70 million higher than its prior expectations.
Robust Outlook
For Fiscal year 2024, CCL expects adjusted EBITDA to rise by over 30% to $5.63 billion compared to 2023. For the upcoming quarter, the company anticipates adjusted EBITDA to balloon by over 50% year-over-year to $1.05 billion.
Is CCL a Good Stock to Buy Now?
CCL’s share price has rallied by nearly 20% over the past six months. Overall, consensus on the Street remains a Strong Buy for Carnival alongside an average CCL price target of $19.78. This points to a further upside potential of 20.4% in the company’s share price. However, analysts’ views on the stock could see a revision following today’s earnings report.
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