Carnival Corp

Carnival Corp has continued its string of disappointing results and the company failed to meet Wall Street expectations in terms of revenues as well as earnings in the last quarter as well. Given the resumption of the guest cruise operations, the company saw its adjusted EBITDA being positive for the first time. The revenue of the last quarter increased by around 80% in comparison to the previous quarter. The onboard and the rest of the revenues per diems were up significantly in the quarter. The portfolio and fleet decisions taken by the company in this quarter will provide strong tailwinds. It has been redoubling its efforts to attract new-to-cruise guests. One positive statistic that the management cited was that in the last quarter alone, Carnival had twice the guests that it carried in the year last year which is why its bookings volumes should hopefully accelerate in the coming months as well. The management is still managing the close-in nature of its booking curve that was disrupted by the pandemic. We provide the stock of Carnival Corp. with a ‘Hold’ rating with a revision in the target price.