Carnival Corp. & plc (CCL stock) - Sould you Board the Cruise?

Carnival Corp. & plc had a good run in Q1 2023.
Can they continue to sail through the financial storm the world is facing?

Can Carnival Corp. & plc (NASDAQ: CCL), celebrate with their upcoming stock scenario? The company was founded in 1972, headquartered in Miami, Florida, the United States. In 2022, they claimed to have almost 50% of the global cruising market share.

Carnival Corp & Braves Global Economic Headwinds

Despite battling volatile fuel prices and currency rates, a strong rise in demand made Carnival Corp’s latest fiscal quarter which ended on February 28, 2023, generate a revenue of $4.4 billion, with year-over-year growth of 175%. The company served 2.7 million passengers, which is more than double compared to last cycle’s 1 million.

Revenue outperformed the leadership’s expectations. The bookings were highest in the history of its business in the last quarter – CEO Josh Weinstein said they are booked over 70% for the remaining year. The three-month period saw record customer deposits of $5.7 billion.

Despite all these positives, there were some concerning points, too; in Q1 2023, Carnival Corp. & plc booked a net loss of $693 million. In comparison to 2022, the total net loss was $6.1 billion. The travel company could not generate any positive profit since COVID-19.

From the first quarter of 2020, the company has been unable to generate positive profits. Balance sheets also show a debt of $30 billion. The surge in latest fiscal quarter, shows a net loss of $693 million. Carnival Corp.’s net loss in 2022 was $6.1 billion.

Carnival Corp. & plc (CCL) – The Number Game

When writing, CCL stock was trading at $10.16 with a gain of 2.73%; previous close and open were at $9.89 and $10.12, respectively. With an average volume of 45.53 million shares, the market cap is strong at $14.031 billion. Analysts have placed the target at $11.62 per stock with a 14.4% upside.

With a 2.27 rating for HOLD and a bearish short interest of 11.80%, shares sold short indicate carefully treading the waters. Concerning February 2023 data, the year-over-year change revenue gained 173.14% from $4.43 billion, and revenue per share was $12.38. The operating expenses jumped 24.13% from $2.04 billion, and net income was negative $693.00 million and hiked by 63.35%.

The earnings per share (EPS) gained 66.81% from negative $0.55, while EBITDA ratings hiked by 142.72% from $397.75 million. The last earnings were reported on March 27, 2023, where the estimated revenue was $4.318 billion, while the reported revenue was $4.432 billion, with a surprise of $113.606 million and a hike of 2.63%. The next earnings are scheduled on June 22, 2023, with an estimated revenue of $4.792 billion.

Carnival Corp. & plc (CCL) – Candle Exploration

Positives are on Carnival Corp. & plc (NASDAQ: CCL), with a short-term bullish sentiment, a positive overlap in MACD and a supposedly upward-going EMA. If the trend continues, the price might enter the supply zone, but a breakthrough from the immediate resistance present at $11.48 is essential for it to happen.

Source: CCL; TradingView

If the sentiments are reversed, they might cross the immediate support at the $8.50 mark but bounce off from the demand zone. It could bounce between immediate support and resistance for some time, and a breakout in any direction would signal further movement.

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