News Summary
Carnival Cruise Line shares rose on Thursday after the company announced record revenues in the fourth quarter and for the year, with strong expectations for 2024. Revenues hit $5.4 billion in the fourth quarter, a 40% increase from the same quarter last year and a 13% rise compared to the same period in 2019, before operations were halted due to the COVID-19 pandemic. Annual revenues reached a record $21.6 billion, as consumers unleashed pent-up demand and savings on travel.
Financial Performance
Carnival’s losses narrowed in the fourth quarter to $48 million from $1.6 billion last year. On a non-GAAP basis, the company reported a net income of $1 million for the full year, making 2023 Carnival’s first profitable year since the pandemic began.
2024 Outlook
The company’s management was optimistic in its outlook for 2024. Strong demand in the second half of this year indicates that bookings for 2024 are already two-thirds booked. CEO Josh Weinstein stated in the earnings report: “We continue to experience strong booking momentum across all markets, with noticeable strength for our European brands during the quarter as booking volumes increased at much higher price points.”
Debt Reduction
The company highlighted its efforts to pay down debt, which is a priority this year due to rising interest rates and borrowing costs. After paying approximately $6 billion throughout the year, long-term debt exceeded $30 billion at the end of the fourth quarter.
Stock Performance
Carnival shares have more than doubled this year, rising as much as 7% to a five-month high on Thursday afternoon. This was followed by Norwegian Cruise Line Holdings and Royal Caribbean, with each rising by around 5%.
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