Stock Guy777
2 months ago
The Mötley fool is encouraging to buy carnival As their booking is at all-time high…
Total customer deposits at Carnival for future sailings are at an all-time high of $8.3 billion. In the company’s second quarter, revenue rose 18% year over year to $5.78 billion, exceeding Wall Street expectations. Where analysts were expecting a loss, Carnival posted a net gain. Carnival has been exceeding Wall Street profit targets since resuming normal operations almost two years ago.
The same Carnival that, during the darkest stretches of the COVID-19 crisis, some figured would never turn a profit is trading at a recent price-to-sales ratio of 0.8, well below its five-year average of 1.3 (which includes some years heavily pressured by the pandemic).
Carnival’s doing a good job of cleaning up its balance sheet now that it’s making money again. It has bought back $6.6 billion of its debt in the last five quarters. Carnival bulls expect debt repayments, more efficiency from a newer fleet and, eventually, a return to paying out quarterly dividends. Bears worry that there’s still a lot of debt to pay off. Do a little digging and see what you think. (The Motley Fool recommends Carnival.)