Latest news with #Festivale
Yahoo
05-05-2025
- Business
- Yahoo
Is Carnival About to Sail Into Rough Waters?
Royal Caribbean's strong report and signs of weakness cited by Norwegian leave an unclear picture of the state of the cruise industry. Carnival is heavily in debt, and the growing size of its fleet could make it vulnerable in a downturn. Carnival's industry leadership and low stock price could bode well for investors regardless of the economy. Investors may suddenly feel confused about Carnival (NYSE: CCL) stock. Both Carnival and its largest competitors, Royal Caribbean and Norwegian Cruise Line Holdings, had previously stuck to bullish forecasts as bookings remained strong despite sluggishness in the market. Unfortunately, the industry may have begun to show signs of rough waters. Royal Caribbean raised guidance in its most recent earnings report, while Norwegian reduced guidance on net yield growth, an indication of how much revenue it generated relative to its capacity. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Carnival does not report earnings until mid-June, so it could be several weeks before investors know whether the cruise line stock's performance more closely resembles that of Royal Caribbean or Norwegian. The question for investors is whether they can feel confident about buying Carnival stock despite that uncertainty. Indeed, the effects of the pandemic shutdown in 2020 and 2021 continue to weigh on the company's financials. To make up for the revenue shortfall, it had to borrow tens of billions of dollars. Today, it still holds about $27 billion in total debt, a tremendous burden for a company with a book value of $9.2 billion. That is crucial because servicing and paying down that debt has depended on the strength of its bookings. It has also invested in added capacity. It plans to launch the Festivale in 2027 and the Tropicale in 2028. Assuming demand stays strong, those ships should add to the company's top and bottom lines. Nonetheless, such investments are more difficult when a company is heavily in debt. If consumers stop taking cruises due to economic concerns, it will have to cut prices to attract consumers, squeezing the company's margins. That added capacity could also make the company more vulnerable if a meaningful downturn occurs. However, despite such potential challenges, Carnival's business has recovered from the pandemic. And it is the industry leader. About 42% of all cruise passengers sail on a Carnival-owned ship, and the added capacity should solidify its leadership. Amid that market lead, cabin availability has been scant in recent quarters. It booked 103% of its capacity (100% capacity is two people per cabin) in the first quarter of fiscal 2025 (ended Feb. 28). Also, the company says 2026 bookings are at record levels. This allows Carnival to command higher prices. Not surprisingly, those bookings have boosted its financials. In the fiscal first quarter, revenue of $5.8 billion rose 7% yearly. That led to a $78 million quarterly loss. Still, its $1.9 billion profit in fiscal 2024 after losing money in the first quarter of that year likely means the loss is temporary. About $1.5 billion of the $27 billion in total debt is due this year. Fortunately, the company paid off more than $3 billion of its debt in fiscal 2024 and another $500 million in the first quarter, implying that it can retire current debt without refinancing. Lastly, investors must look at the stock itself. Although it is up by around 20% over the last year, it has fallen about 35% since late January. That takes its price-to-earnings ratio (P/E) to 12, the lowest level since returning to profitability last year. That likely means its challenges are already factored into the stock price. For now, it is unclear whether the softness reported by Norwegian or the continued prosperity noted by Royal Caribbean better reflects the state of Carnival. Still, it looks like the stock is prepared to either weather economic challenges or benefit from the continued popularity of cruises. The cruise line might have to slow its expansion if the economy forces it to cut prices to attract customers. Nonetheless, Carnival has shown that it can maintain its market lead, retire its massive debt, and expand its fleet amid strong demand. At just 12 times earnings, investors should consider either holding out or adding shares rather than selling because of economic conditions that are likely temporary. Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,685!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $701,781!* Now, it's worth noting Stock Advisor's total average return is 906% — a market-crushing outperformance compared to 164% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy. Is Carnival About to Sail Into Rough Waters? was originally published by The Motley Fool Sign in to access your portfolio
USA Today
07-04-2025
- Entertainment
- USA Today
Goodbye roller coaster, hello water park: Carnival reveals details of new ship Festivale
Goodbye roller coaster, hello water park: Carnival reveals details of new ship Festivale Show Caption Hide Caption How to find the best price, perks when booking a cruise Find the cruise that works for your budget with these tips. Problem Solved Carnival Cruise Line's newest ship, Carnival Festivale, will call Port Canaveral home starting in spring 2027. The ship will feature new onboard entertainment zones, a family-friendly water park, and more connecting cabins. Itineraries for the ship will be announced later this summer. Carnival Cruise Line is bringing a new Fun Ship to Port Canaveral in spring 2027. Carnival Festivale, the fourth ship in the line's Excel Class, will homeport in the Orlando area, the cruise line announced Sunday. The ship shares a name with a previous Carnival vessel that began sailing for the line in the late 1970s. The ship will feature three new onboard zones, including venues and 'immersive experiences' centered around music, according to a news release, and the Carnival Waterworks Ultra water park. Guests will find six water slides – including family raft slides – splash pads and more, located in an outdoor zone called Sunsation Point. The area will replace the line's BOLT: Ultimate Sea Coaster found on other Excel Class ships. Other nearby activities include a 'treehouse-inspired elevated adventure trail,' miniature golf, and arcade games, according to the release. 'In the evening, Sunsation Point bursts with vibrant illumination and the fun continues into the night with special evening events that have extended water park hours, in addition to a DJ and other activities,' the cruise line said. 'This is a first for Carnival to open Waterworks at night and activate multi deck zones for guests of all ages to enjoy together in the evening.' Festivale will also have close to 70% more interconnecting cabins than its three sister ships in an effort to 'better serve' families. One million children sail with the cruise line annually, per the release. The Excel Class currently includes Carnival Mardi Gras, Celebration and Jubilee, which can each accommodate more than 5,200 guests at double occupancy. New dining venues will debut onboard as well, alongside returning favorites like Guy's Burger Joint and Big Chicken. More details are still to be announced. Specifics on the ship's itineraries will be released this summer, Carnival said, and travelers can sign up for updates through the cruise line's website. The vessel is one of several upcoming Carnival ships. Carnival Tropicale, the fifth Excel Class vessel, is set for delivery in spring 2028. That will be followed by three more new ships with more than 3,000 staterooms each, starting in 2029, which will be the biggest in parent company Carnival Corporation's fleet. The cruise line also recently began operating Carnival Adventure and Carnival Encounter, which previously sailed for the P&O Cruises Australia brand before it was folded into Carnival. Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@
