U.S. markets open in 7 hours 39 minutes
  • S&P Futures

    +16.50 (+0.38%)
  • Dow Futures

    +123.00 (+0.36%)
  • Nasdaq Futures

    +84.25 (+0.57%)
  • Russell 2000 Futures

    +7.50 (+0.42%)
  • Crude Oil

    +0.09 (+0.10%)
  • Gold

    -8.30 (-0.44%)
  • Silver

    -0.52 (-2.29%)

    -0.0010 (-0.10%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +0.18 (+1.04%)

    -0.0022 (-0.18%)

    +0.3210 (+0.21%)
  • Bitcoin USD

    +912.20 (+3.37%)
  • CMC Crypto 200

    +22.18 (+3.83%)
  • FTSE 100

    +6.23 (+0.08%)
  • Nikkei 225

    +64.89 (+0.20%)

Carnival (CCL) Posts Wider-than-Expected Q1 Loss, Bookings Up

Carnival Corporation & plc CCL reported first-quarter fiscal 2021 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. The top line lagged the consensus estimate for the fourth straight quarter. Notably, cruise cancellations due to the coronavirus pandemic continue to affect the company results. Despite reporting lower-than-expected first-quarter results, its shares gained 1.4% courtesy of surge in bookings.

The company reported loss per share of $1.79, wider-than the Zacks Consensus Estimate of a loss of $1.66. In the year-ago quarter, the company had reported earnings per share of 22 cents. Revenues amounted to $26 million, which fell short of the consensus mark of $108 million. The top line also declined sharply from the prior-year quarter’s figure of $4.8 billion. The company reported adjusted net loss of $2 billion in the first quarter.

Carnival, president and CEO Arnold Donald said “We are focused on resuming operations as quickly as practical, while at the same time demonstrating prudent stewardship of capital and doing so in a way that serves the best interests of public health. Our highest responsibility and therefore our top priority is always compliance, environmental protection and the health, safety and well-being of everyone.”

Liquidity and Cash Burn

The company ended the quarter with cash and cash equivalents of $11.5 billion. The company announced that it has enough liquidity to return to full operation. It further added that it will be pursuing refinancing opportunities to decrease interest expense and extend maturities.

Moreover, average monthly cash burn in the quarter was $500 million, marginally better than the company’s expectation. It anticipates average monthly cash burn in first half of 2021 to be nearly $550 million, which is better-than previously anticipated.

Carnival Corporation Price, Consensus and EPS Surprise

Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote

Bookings Update

The company stated that cumulative advanced bookings for full year 2022 are ahead of a very robust 2019 as of Mar 21, 2021. These bookings were achieved by negligeable advertising and marketing.

The company’s CEO further said “Booking volumes are accelerating. During the first quarter of 2021 they were approximately 90% higher than volumes during the fourth quarter of 2020 reflecting both the significant pent up demand and long-term potential for cruising.”

The company refrained from providing earnings guidance for fiscal 2021 due to the pandemic. Pause in operations will continue to hurt the company’s liquidity, results and results. The company anticipates to report a net loss on both U.S. GAAP and adjusted basis for the second quarter and full year ending Nov 30, 2021.

Zacks Rank & a Key Pick

Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Group RCL in the Zacks Leisure and Recreation Services industry — carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A better-ranked stock in the same space is Camping World Holdings, Inc. CWH, which sports a Zacks Rank #1.

Camping World Holdings’ 2021 earnings are expected to surge 20.5%.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research