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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

CCL Stock Climbed After Carnival’s Second-quarter Revenue Report Which Was Much Higher Than the First Quarter of 2022’s Totals.

For Carnival (NYSE: CCL), the GAAP loss per share was $1.61, which was higher than analysts’ expectations of a per-share loss of $0.08. The company’s second-quarter revenue was $2.4 billion, up nearly 50 percent from the first quarter, but well below FactSet’s forecast of $2.76 billion.

The second quarter’s occupancy rate was 69 percent, up from the prior quarter’s 54 percent. As of May 31, customer deposits have risen from $1.4 billion to $5.1 billion, up from $3.7 billion at the end of February, according to the Federal Deposit Insurance Corporation.

Bookings for future sailings were almost twice the first quarter’s bookings as of Friday; 91% of the company’s capacity was in guest cruise operation. The full fleets of five of Carnival’s nine brands are now back in service for guests.

According to current CEO Arnold Donald, “it is reinforcing to see continued strength in demand with our guests overcoming far more restrictive protocols than broader society and travel at large,” leading to a near doubling of booking volumes since the last quarter with near-term bookings even outpacing 2019.” “We were pleased by the close-in demand and continue to focus on the optimization of occupancy while protecting long-term price,” said the company.

Second-half 2022 adjusted cruise expenditures excluding fuel are estimated to be lower than the first-half 2022 adjusted cruise expenses.

As a result of rising gasoline costs, the Covid-19 epidemic, and inflation, the firm expects to have a financial loss for both the third quarter of 2022 and the fiscal year. A return to historical levels of Ebitda, or profits before interest and taxes, is expected by Carnival in 2023 when the company will be operating at full capacity. Third-quarter 2022 Ebitda is expected to be positive.

It also confirmed its adherence to the previously stated succession plan. A new CEO, Josh Weinstein, will take over for Donald on August 1, and Weinstein is now the company’s COO.

The price of Carnival’s shares rose by 10% to $10.62 in Friday trading. Because of fears that the economy may be headed into a recession, the company’s stock has fallen by 47 percent in the last year.

While the whole tourist business was affected by the epidemic, cruise companies bore the brunt of the losses. Due to growing fuel and cost inflation as well as Covid-19 rules that have barred unvaccinated people from traveling, tourism has rebounded, but cruises have lagged behind.

Investors may be encouraged by Carnival’s second-quarter performance as a sign that the downturn is nearing an end. In fact, some experts believe that a busy summer cruise season will be good for business for cruise lines.

The post CCL Stock Climbed After Carnival’s Second-quarter Revenue Report Which Was Much Higher Than the First Quarter of 2022’s Totals. appeared first on Best Stocks.

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