On Tuesday, an analyst from William Blair maintained an Outperform rating on Carnival (NYSE:CCL) Corporation stock (NYSE:CCL), anticipating the company to surpass its first-quarter guidance.
Carnival is expected to modestly outperform on both revenue and earnings, driven by strong booking trends and high onboard spending. The analyst predicts that Carnival's adjusted EBITDA will more than double from the same period last year, exceeding expectations by approximately 5%.
The positive outlook is supported by an estimated 16% to 17% increase in constant-currency net yields and a return to normalized occupancy levels, contrasting with the lower levels experienced in the previous year. The company's financial performance benefits from the recovery in the travel industry and increased consumer spending.
Carnival's net cruise costs, excluding fuel, are projected to align with guidance, showing a 9.5% rise. This increase includes various factors such as a return to more standard occupancy levels, contributing 300 to 400 basis points, approximately 150 basis points from additional dry docks, and a 100 basis point impact from increased advertising costs.
The analyst's comments indicate confidence in Carnival's ability to manage costs effectively while benefiting from a rebound in the cruise industry. The forecasted growth in adjusted EBITDA and net yields suggest a robust recovery for the company, which has been navigating the challenges posed by the global health crisis.
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