Stifel analyst Steven Wieczynski attributes a selloff in shares of cruiseline operators to a comment made by Carnival (CCL) CEO Arnold Donald regarding discounting activity by other operators in the Caribbean for Q4 sailings. However, management clarified the comment did not apply to the Caribbean as a whole, but rather to a small number of itineraries, Wieczynski noted. He believes the comment was taken somewhat out of context and views the selloff as totally overdone. Wieczynski keeps a Buy rating and $79 price target on Carnival. Other publicly traded cruise operators include Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH).
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Reports Q1 revenue $3.7B, consensus $3.69B. Load factors in the first quarter were 107%. "Wow, what a great start to the year! Demand for our leading brands and the incredible experiences they deliver continues to be very robust, resulting in outperformance in the first quarter, a further increase of full year earnings guidance, and 60% expected earnings growth year over year," said Jason Liberty, president and CEO, Royal Caribbean Group. "Building on this momentum, we expect to achieve all our Trifecta financial goals in 2024, which allows us to focus on a new era of growth to drive long-term shareholder returns and take a greater share of the rapidly growing $1.9 trillion global vacation market."