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- 1 Carnival Corporation & plc reported positive earnings on June 27 but failed to boost the rally.
- 2 Its competitors also registered losses, and the industry braces for a Fed interest rate hike next month.
Carnival Corp. announced positive earnings on June 27, beating estimates by 2.56%. Nevertheless, CCL stock fell by 7.59% in a day. The United States benchmark equity index performed below par on June 26, as the market is preparing for an interest rate hike by Federal Reserves next month. The Nasdaq Composite fell by 1.2% to 13,355.8, and S&P 500 dropped 0.5% to 4,325.8.
Carnival Corporation & plc (CCL Stock) – Earnings and Financial Analysis
The shares of one of the biggest cruise operators are navigating choppy waters. In the last seven days, the share price fell by 10.43%. This drop follows in the wake of a record customer deposit at an all-time high of $7.2 Billion as of May 31, 2023. Previously, on May 31, 2019, this number reached $6 Billion, a yester-year high. This positivity shall help the company recover from the losses incurred during and after the COVID-19 pandemic.
The latest earnings report was released on June 26, 2023. The reported revenue of $4.911 billion managed to beat the consensus estimate of $4.788 billion by 2.56%. The surprise comes at an increase of $122.648 million. The cruise company also reported a quarterly adjusted loss of 31 cents per share, which was estimated to be 34 cents per share.
At press time, CCL Stock is trading at $14.60 after dropping 7.59% in the last 24 hours.
Previous close and open were at $15.80 and $14.98, respectively. The trailing twelve-month (ttm) Earnings per share (EPS) were said to be minus $4.06, while as per the report, the quarterly change in EPS hiked by 66.81% to negative $0.55.
With a volume of 106.43 million shares, the market cap of the cruise company stands at $19.021 billion. Analysts provided a 2.56 rating for moderate buy and placed the price target at $13.40 with a downside of 8.2%. The 52-week change comes with a gain of 41.34%.
Carnival expects to keep its EBITDA for 2023 to be between $4.10 billion to $4.25 billion. However, as per the report, its value swelled by 144.15% to $411.00 million. The share price for NYSE: CCL reported a gain of 30.94% in a month, and 89.36% in six months, while the YTD gain is 77.18%.
The shares of its competitors, Norwegian (NCLH), declined by 6% while that of Royal Caribbean (RCL) declined by 3% recently.
Considering February 2023 data, the company’s revenue swelled by 173.41% to $4.43 billion, while the revenue (ttm) is reported to be $14.98 billion. The revenue per share comes at $12.37 (ttm), and the quarterly revenue growth shows noticeable growth of 173.10%, year over year (YoY).
Total cash in hand at the end of the most recent quarter (mrq) is $5.46 billion, and the total debt in a similar time frame is $36.46 billion. The profit margin dropped by 32.68%, and the operating margin by 17.57% (ttm). The company’s net income hiked by 63.35% to minus $693.00 million, and the net profit margin saw a jump of 86.58% to negative 15.63.
Carnival Corp. (CCl Stock) – Candle Exploration
Despite positive earnings beating consensus estimates, the CCL share price dropped significantly. It can be seen that the price was hiked before the earnings announcement, creating a trap. Price action is expected to go south from here and test the ascending trend line first. It shall bounce off immediate support and consolidate between immediate resistance.
The slightly ascending curve of the EMA indicating growth is contradicted by the RSI overlap. A movement below the immediate support is unlikely, but if the price goes down, it might stay low for a long time. A rally to fuel the price action into the supply zone would need the winds to favor their direction, along with calmer waves.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
