The seas have been choppy recently, but Carnival Corporation (NYSE:CCL) is keeping steady at the helm. The company has reported its best bookings on record, and the first half of the year is nearly fully booked just one month into 2024.
Despite the challenging waters, Carnival (CCL) remains optimistic. Recent developments in the Red Sea have led to the rerouting of itineraries for 12 ships across seven brands through May 2024. This shift is necessary due to consultations with global security experts and is expected to cost the cruise operator approximately $0.07 to $0.08 per share in 2024, with Q2 bearing the brunt of the impact.
While Carnival (CCL) is adjusting its course, other companies such as Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) have minimal exposure to the Red Sea. Despite the shift, BofA Securities maintains its positive outlook and continues to expect strong Q4 results for Royal Caribbean (RCL), with a Neutral rating for the stock. Royal Caribbean (RCL) is set to report Q4 results on Feb 1, with the Seeking Alpha EPS consensus estimate at $1.13 and revenue expected to be $3.36B.
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