- Record fourth quarter sales
- Shares up 140% year-to-date
- 2024 cruises already two-thirds booked
Shares in Carnival (CCL:NYSE) have sailed ahead by an impressive 140% year-to-date to the $19 mark, making the cruise operator one of the best performing stocks of 2023.
This meteoric rise is not surprising considering how Carnival has cashed in on the post-pandemic travel boom and the fact that UK consumers continue to prioritise holidays despite the cost-of-living crisis.
Carnival shares have more than doubled since the beginning of the year, outperforming even the S&P 500’s stellar 23% rise.
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The company reported record revenues of $5.4 billion for the fourth quarter and said ‘recent booking volumes for the two weeks around Black Friday and Cyber Monday reached an all-time high for that period’.
The top line haul exceeded Wall Street expectations, with eight analysts surveyed by Zacks calling for sales of $5.32 billion.
Bullish about the future, Carnival CEO Josh Weinstein said: ‘We entered the year with the best booked position we have ever seen, and now have nearly two-thirds of our occupancy already on the books for 2024, at considerably higher prices (in constant currency).’
Weinstein added: ‘We continue to experience strong bookings momentum across the board, with our European brands showing remarkable strength during the quarter with booking volumes running up well into the double digits at considerably higher prices.’
STRATEGY YIELDING SUCCESS
Weinstein attributed the company’s success to its ‘yield management strategy’ and ‘strong pricing’ as well as ‘ongoing advertising investments’ and ‘lead generation efforts’.
He added that Carnival has also had increasing support from its trade partners and ‘the exceptional guest experiences our team members provide, help to deliver millions of cruising advocates.’
The company behind P&O Cruises and Cunard, which operates the Queen Mary 2, Queen Elizabeth and Queen Victoria, expects to deliver adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of $5.6 billion for 2024, implying 30% growth versus 2023.
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