Carnival Provides Bookings Update, Sees Impact From Red Sea Rerouting
Portfolio Pulse from Erica Kollmann
Carnival Corporation (NYSE:CCL) reported record-high booking volumes since November, with increased pricing and occupancy compared to 2023. The company will reroute 12 ships from the Red Sea, affecting its adjusted EPS by $0.07 to $0.08 for 2024, mainly in Q2. Despite this, Carnival expects strong bookings to offset the rerouting impact. Carnival also redeemed its $571 million 9.875% senior secured notes due 2027, clearing all second lien debt. The stock pays a dividend with a 4.21% yield as of Jan. 30, 2024.
January 30, 2024 | 5:07 pm
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POSITIVE IMPACT
Carnival Corporation reported all-time high bookings and expects strong performance to offset the EPS impact from Red Sea rerouting. It also redeemed high-interest debt, which may improve financial health, and pays a 4.21% dividend yield.
The positive booking trend and the redemption of high-interest debt are likely to be viewed favorably by investors, potentially leading to a short-term increase in stock price. The dividend yield provides additional investor incentive. However, the EPS impact from the Red Sea rerouting could temper some of the positive sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100