The Cruise Comeback 📈

Carnival Cruise Lines $CCL continues to show why it’s one of the top operators in global leisure travel.

The $33B cruise giant just reported a record-breaking quarter, posting the highest quarterly margins in nearly 20 years.

The market rewarded the results with a 6.9% rally, marking the company’s 5th positive earnings reaction in the last 7 quarters.

After being completely devastated during COVID, the travel industry is booming like never before.

Everything about this report was fantastic.

They're crushing it, and it’s a clear sign that U.S. consumers are still spending.

Despite the strength, the stock has gone nowhere for years. 

We think that could be changing soon...

Here are the latest earnings stats for CCL 👇

*Click the image to enlarge it

Carnival $CCL had a +1.30 reaction score after reporting a double beat.

The company reported revenues of $6.33B, versus the expected $6.21B, and earnings per share of $0.35, versus the expected $0.25. 

Now let's dive into the data and talk about what happened with this report 👇

CCL has been rewarded for 5 of its last 7 earnings reports 🔥

Carnival rallied 6.9% after this earnings report, and here's why:

• The company had a record quarter, achieving the highest quarterly margins in nearly 20 years.
• Adjusted net income more than tripled year-over-year.
• In addition to the great quarter, the management team increased its forward guidance across the board.

This was a stellar report from one of the largest cruise lines in the world. 

If this company is crushing it, how bad can things really be for the U.S. consumer?

We love how the market has consistently rewarded shareholders for the company's earnings reports.

Despite the solid underlying fundamentals, the stock has gone nowhere for years.

We think the stock is poised to break out soon and catch up to Royal Caribbean $RCL.

If CCL is below 29, the path of least resistance is sideways for the foreseeable future.

New multi-year highs would shift our bias higher.

Thank you for reading.

- The Beat Report Team 

P.S.: Jeff Macke has been studying retail for over 30 years and is still on the cutting edge. 

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