Jim Cramer on Netflix and Other Stocks

12. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 53

Carnival Corporation & plc (NYSE:CCL) is a prominent provider of leisure travel services, operating on a global scale. It is recognized for its diverse portfolio of cruise brands, which includes Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard. When Cramer was asked by a caller if he liked the stock, he commented he liked Viking and Royal Caribbean better.

“Well, look, I don’t know about the actual weather forecast and where things are going to go. I do know that I do prefer Royal Caribbean. I think it’s got better balance sheets, got more momentum. But Carnival’s good… Look, these cruise stocks are really driven. They’re all good, but Royal Caribbean is my favorite. I also like Viking.”

It should be noted that in recent quarters, Carnival Corporation (NYSE:CCL) has seen a significant resurgence in business activity, with ships once again filled to capacity and bookings reaching unprecedented levels. The company reported remarkable results in its fiscal third quarter, achieving record figures in multiple categories. Revenue reached $7.9 billion, a 14% increase compared to the previous year. Additionally, operating income soared to $2.2 billion, marking a 34% rise year-over-year.

Adjusted EBITDA also experienced strong growth, totaling $2.8 billion, a 25% increase from the same quarter last year. Total customer deposits reached $6.8 billion, which points to strong future business prospects. For the upcoming fiscal fourth quarter, Carnival Corporation (NYSE:CCL) forecasts adjusted EBITDA to increase by 20%, projecting a figure of approximately $1.14 billion.

Additionally, the company expects adjusted EPS of $0.05, alongside a 3% growth in capacity compared to the prior year, with available lower berth days (ALBDs) estimated at 24 million. Furthermore, new yields are anticipated to rise by 7%, highlighting the company’s ongoing recovery and demand for cruise experiences.