Carnival CorporationNYSE: CCL

The Leisure & Recreation Services sector benefits from positive economic factors, especially the decrease in interest rates by the Federal Reserve. Companies such as RCL, CCL, NCLH, and CNK are well-placed to take advantage of these industry trends.

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In the latest trading session, Carnival (CCL) finished at $24.31, showing a decrease of 0.98% compared to the day before.

Carnival Corporation has come out of the pandemic with a high level of debt and low occupancy rates. The management is prioritizing the improvement of its capital structure to reduce interest costs. At the same time, the company is benefiting from a growing demand for cruise vacations from both older and younger travelers around the world.

CCL has done well in the third quarter of 2024 and is looking for even better results this year and in the next three years. The stock rose after the earnings call, showing confidence in the management's outlook for the rest of 2024 and 2025. CCL's appeal to Millennials will drive its future growth while still keeping its strong customer base of those over 62.

In the third quarter of 2024, CCL Industries reported a 9.4% increase in sales, reaching $1,849.7 million, compared to $1,690.5 million in the same period last year. The adjusted basic earnings per Class B share rose by 14.7% to $1.09, while the basic earnings increased by 13.7% to $1.08. The company also saw improvements in operating income, which grew by 12.8%, resulting in a 15.6% operating margin.

This is a comparison of how Carnival (CCL) and Cinemark Holdings (CNK) have done in relation to their industry this year.

At Zacks, we concentrate on the reliable Zacks Rank system, which highlights earnings estimates and changes in those estimates to identify excellent stocks. However, we also keep an eye on the most recent trends in value, growth, and momentum to support our top selections.

In the third quarter of 2024, CCL reported revenues of $7.89 billion and a net income of $1.7 billion, showing year-on-year increases of 15.20% and 61.55%. Various signs indicate that demand in the cruise industry is still robust, which will benefit the company. CCL's main focus is to reduce its debt, a goal that is difficult but possible, and it needs to handle its cash flow carefully, although it has a strong customer deposit of $6.4 billion.