Carnival Corp. Restores Quarterly Dividend, Stock Doubles
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Stock Performance: Carnival's stock has nearly doubled from last year's spring lows, with a market cap of $37 billion and a price-to-earnings ratio of just 11, indicating its relative undervaluation in the rapidly growing travel market, which is attracting investor interest.
- Earnings Beat: Carnival has exceeded Wall Street earnings expectations for 10 consecutive quarters, with the latest report showing an EPS of $0.13 for Q1 2024, surpassing estimates by 48%, indicating strong performance in the post-pandemic recovery and boosting market confidence.
- Guidance Upgrades: The company's earnings guidance for fiscal 2025 was raised from $1.70 to $2.25 per share, reflecting ongoing improvements in profitability; despite a mere 3% revenue growth in Q3, a 39% earnings beat in Q4 reaffirmed the resilience of its business.
- Dividend Restoration: After a six-year hiatus, Carnival reinstated its quarterly dividend at $0.15 per share, which, while yielding only 2.1%, signals the company's confidence in future growth and is expected to further attract investors.
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Analyst Views on CCL
Wall Street analysts forecast CCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCL is 37.59 USD with a low forecast of 33.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 31.150
Low
33.00
Averages
37.59
High
45.00
Current: 31.150
Low
33.00
Averages
37.59
High
45.00
About CCL
Carnival Corporation is a global cruise and leisure travel company. The Company has a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. The Company's segment includes NAA cruise operations, Europe cruise operations (Europe), Cruise Support and Tour and Other. Its Cruise Support segment includes its portfolio of port destinations and exclusive islands as well as other services, all of which are operated for the benefit of its cruise brands. In addition to its cruise operations, it owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which complements its Alaska cruise operations. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Its tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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