Carnival Share Price Soars to Highest Level in a Year as Q2 Earnings Outstrip Expectations

Carnival share price was the best-performing stock on Wednesday in London’s trading session as investors digested the company’s latest results. The CCL stock jumped nearly 13% to 1219p, building on gains from its previous trading session. The cruise company has a total market capitalization of £15.50 billion.

Upbeat Earnings

Carnival share price has been in the spotlight this week after jumping to its highest level since April 2022, leading cruise stocks higher. The CCL stock has been among the best-performing stocks so far this year in the European stock market after climbing more than 104% in the year to date. Carnival’s shares have soared by 54% in the past month and more than 108% in the past half of this year.

The cruise giant, Carnival, reported its financial results for the second quarter earlier on Monday, which saw the company’s shares sink by 12%. However, the stock has strongly rebounded, erasing losses from Monday’s trading session. According to the company, travel demand has remained strong heading into the summer vacation season.

The cruise operator reported an improvement in its adjusted loss to 31 cents per share, compared to a loss of $1.65 in the previous year. Carnival generated $4.9 billion in revenues during the second quarter, up from $2.4 billion last year. Total customer deposits hit a record of $7.2 billion in the quarter, surpassing the previous record of $6 billion in 2019. The upside was buoyed by strength in pricing, solid onboard spending levels, and capacity-generation initiatives.

Notably, Carnival reported a GAAP net loss of $407 million, down from $1.8 billion in the prior-year quarter. Adjusted net loss amounted to $395 million in Q2, with the company’s liquidity at $7.3 billion. The cruise operator has reported quarterly losses since the second quarter of 2020 when the coronavirus pandemic struck. Despite the huge debt amounts, the company has made significant progress toward its recovery. The company’s total debt came in slightly lower at $33.7 billion in the second quarter.

Carnival Share Price Outlook

Carnival share price has been hovering around its highest level in more than a year for the past two days. The CCL stock price has staged a significant recovery this year, surging more than 100% from its lowest level this year.

On the daily chart, the stock has managed to move above the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has titled higher into the overbought zone, hinting at an increased buying pressure.

Therefore, I expect the Carnival share price to continue moving higher as buyers target the next resistance level at 1300p. However, a move below 1088.5p might push the price lower to the 50-day EMA at 910p.

CCL Price Chart

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