Cruise operator Carnival PLC (LSE:CCL) and Corporation (NYSE:CCL) pulls into port for a year-end update next Thursday, having recently returned to profit for the first time since the pandemic.
Record third-quarter sales helped the FTSE 250 group float back into the black, it reported in October, with both revenue and earnings significantly exceeding expectations and leading to the board raising the full-year outlook.
Strength in demand in North America, Australia and Europe meant booking volumes remained strong into September.
Shares in the company, which fell three-quarters from above £30 to below £7 in Covid-hit 2020 as its ships became floating super-spreader events, have continued to struggle, falling to new lows not far above £5 last year.
In 2023 they have started to pick up, topping £13 in the summer and again this month as optimism returns, or at least pessimism is diluted.
Analysts at Shore Capital removed their ‘sell’ rating, moving to ‘hold’, on new-found confidence in Carnival reaching its profit estimates on the back of stronger pricing.
Some areas the investment group still offer cause for concern, including fuel costs and its debt pile.
Net borrowings, excluding cash and leases, have been trimmed but still stood at US$29 billion and are expected to float back above US$30 billion by the end of the year.