Industry Overview - The cruise industry is experiencing volatility, with major operators seeing stock prices drop by 29%, 17%, and 35% in 2025 [1][2] - The trade war and inflationary pressures are impacting consumer sentiment and spending in the cruise sector [2] Carnival Corporation - Carnival is the largest cruise line operator by revenue and passenger volume, reporting a revenue increase of 8% to 5.81billionforthequarterendinginFebruary[3][4]−Despitebeingtheweakestyear−over−yeargrowthsinceresumingoperationspost−pandemic,Carnival′srevenueexceededanalystexpectationsof5.74 billion [4] - The company has posted seven consecutive quarters of double-digit percentage earnings surprises, with the latest fiscal Q1 2025 EPS beating estimates by 485% [5] - Carnival has 7.3billionincustomerdepositsforfuturesailings,indicatingstrongbookingtrends[6]−Thestockistradingatover11timestrailingearnings,droppingto9.4timesforthecurrentyearand8.3timesforfiscal2026,butcarriesover25 billion in debt [7] Viking Holdings - Viking is a niche leader in river cruises, operating smaller luxury ships that cater to affluent customers, and has experienced only an 11% price pullback year to date [9][10] - The company has 88% of its 2025 capacity already booked, indicating a strong near-term outlook [11] - Viking trades at a premium, with valuations at 17 times this year's projected earnings and 13 times next year's estimates, while maintaining less than 5billioninlong−termdebt[11]OneSpaWorld−OneSpaWorldoperatesspason199cruiseshipsandhasauniquepositioninthemarket,functioningasaglobalrecruiterofcertifiedtreatmentproviders[12][13]−Thecompanyreportedan11100 million in long-term debt, benefiting from an asset-light business model [14]
Carnival (CCL) The Motley Fool·2025-04-11 15:45