Carnival Provides Bookings Update, Sees Impact From Red Sea Rerouting

Carnival reported an early and robust start to its peak booking period which has exceeded expectations with bookings volumes since November hitting an all-time high. The company reported its best booked position on record, with both pricing and occupancy considerably higher than 2023 levels, and the first half of 2024 almost fully booked.

Carnival Corporation CCL on Tuesday said bookings volumes since November have hit an all-time high, with both pricing and occupancy ‘considerably higher’ than 2023 levels.

The company also said it will reroute itineraries for 12 ships that were scheduled to transit the Red Sea through May 2024. The Red Sea rerouting is expected to have an adjusted EPS impact of $0.07 to $0.08 for full year 2024, with the vast majority of the impact in the second quarter.

Carnival added that it believes its continued strong bookings momentum will deliver outperformance during the year and will offset impacts from its Red Sea rerouting.

Additionally, Carnival announced the redemption of its outstanding $571 million 9.875% second-priority senior secured notes due 2027 which eliminated all of its remaining second lien debt outstanding.

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Is CCL A Good Stock To Buy:

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Carnival‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Carnival CCL does pay a dividend, which yields 4.21% per year as of the closing price on Jan. 30, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Carnival will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

CCL Price Action: According to Benzinga Pro, Carnival shares are mostly flat at $16.55 at the time of publication.

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