We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carnival (CCL) Adds Another Ship to Princess Cruises Line
Read MoreHide Full Article
Cruise and vacation company Carnival Corporation (CCL - Free Report) recently took the delivery of its first international luxury ship tailored particularly for the Chinese market.
An official ceremony was held at a shipyard in Monfalcone, Italy, where the shipbuilder Fincantieri handed over the Majestic Princess to its long-term partner, Princess Cruises. The long-standing partnership between Fincantieri and Carnival’s Princess Cruises dates back to the 1980’s. Additionally, in Jan 2017, the company signed a memorandum of agreement with the Italian shipbuilder to build two additional ships for its Holland America Line and Princess Cruises brands, slated to be delivered in 2021 and 2022, respectively.
Post the handover, the 143,000-ton vessel will set sail on a preview cruise through Mar 31 to Apr 4, departing with long-standing guests, international media, travel agent partners and brand partners from around the globe as well as Chinese guests.
On Apr 4, the ship will embark on her introductory voyage which includes a five-day Adriatic Sea cruise, round trip from Rome. Following this, the ship is set to tour Europe on multiple day cruises, departing from Rome, Barcelona and Athens.
Finally, on May 21, Majestic Princess will set sail on its repositioning cruise themed the “Silk Road Sea Route” journey from Rome to her new home port in Shanghai, where she will begin her first home port season in July. The Silk Road Sea Route is a 49-day journey which will cover a total 22 ports including Athens, Dubai, Cochin, Singapore, Port Klang and Xiamen before arriving in Shanghai. The cruise from China will carry about 3,650 guests to a variety of destinations in July.
Rationale Behind
With the launch of new ships, Carnival aims to formulate measured capacity growth over time that allows its global fleet to meet escalating demand for cruise vacations around the world. Also, it aspires to provide guests with a remarkable vacation experience at an exceptional value.
Carnival has adopted a strategy to grow beyond its familiar itineraries and capitalize on new markets. The Asian source market for cruises is expected to continue to grow significantly on the back of higher consumer demands.
These countries boast of a rapidly developing cruise market with passenger numbers soaring over the past few years which are expected to rise further. A growing middle-class with high disposable income makes these markets an attractive bet for Carnival. Additionally, an increasing number of ports and tourist destinations in Asia present tremendous growth opportunity for the cruise industry and Carnival expects to continue profitably growing its presence in China and throughout Asia.
In fact, despite an economic slowdown in China, the company continues to reinforce its leadership position in the rapidly growing cruise market of the country through increased capacity. Also, with AIDA and Carnival Cruise Line brands joining Costa Cruises and Princess Cruises in China in 2017, Carnival will have four brands in this booming market—offering more variety than any other company.
In a bid to expand its leading presence in China, Carnival has also entered into a joint venture with the country’s largest shipbuilder – China State Shipbuilding Corporation. The joint venture for the first ever cruise ships to be built in China, supports the country’s efforts to prioritize cruise industry growth in its five year economic development plan. The first such Chinese-built ship is slated to be delivered in 2023.
Bottom Line
Shares of Carnival have outperformed the broader Zacks categorized Leisure & Recreation Services industry over the past one year. While the stock rallied 12.4%, the broader industry witnessed a gain of 9.2% in the same time period.
Moreover, recently, the company reported its first-quarter fiscal 2017 results, wherein earnings beat the Zacks Consensus Estimate while revenues came in line. The strong results also led the company to raise its fiscal 2017 guidance. Meanwhile, management noted that cumulative advance bookings for the remainder of 2017 are well ahead of the year-ago level at significantly higher prices.
However, Carnival faces stiff competition from other cruise operators such as Royal Caribbean Cruises Ltd. (RCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) . Moreover, increasing fuel costs, negative currency translation along with macroeconomic issues in key operating regions remain potent headwinds to the company’s performance.
Nevertheless, we note that Carnival is the largest leisure travel company in the world, with a portfolio of 10 cruise brands, which together operate 102 ships. It also visits more than 700 ports around the world, adding up to 226,000 lower berths.
Going forward, Carnival's planned launch of new ships, its strategy to tap into the fast-growing Asian markets along with initiatives to drive revenue yields are likely to prove beneficial.
A better-ranked stock in the industry is The Marcus Corporation (MCS - Free Report) , which sports a Zacks Rank #1. While the company’s long-term growth estimate is 15% the industry’s average is 12.4%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Carnival (CCL) Adds Another Ship to Princess Cruises Line
Cruise and vacation company Carnival Corporation (CCL - Free Report) recently took the delivery of its first international luxury ship tailored particularly for the Chinese market.
An official ceremony was held at a shipyard in Monfalcone, Italy, where the shipbuilder Fincantieri handed over the Majestic Princess to its long-term partner, Princess Cruises. The long-standing partnership between Fincantieri and Carnival’s Princess Cruises dates back to the 1980’s. Additionally, in Jan 2017, the company signed a memorandum of agreement with the Italian shipbuilder to build two additional ships for its Holland America Line and Princess Cruises brands, slated to be delivered in 2021 and 2022, respectively.
Post the handover, the 143,000-ton vessel will set sail on a preview cruise through Mar 31 to Apr 4, departing with long-standing guests, international media, travel agent partners and brand partners from around the globe as well as Chinese guests.
On Apr 4, the ship will embark on her introductory voyage which includes a five-day Adriatic Sea cruise, round trip from Rome. Following this, the ship is set to tour Europe on multiple day cruises, departing from Rome, Barcelona and Athens.
Finally, on May 21, Majestic Princess will set sail on its repositioning cruise themed the “Silk Road Sea Route” journey from Rome to her new home port in Shanghai, where she will begin her first home port season in July. The Silk Road Sea Route is a 49-day journey which will cover a total 22 ports including Athens, Dubai, Cochin, Singapore, Port Klang and Xiamen before arriving in Shanghai. The cruise from China will carry about 3,650 guests to a variety of destinations in July.
Rationale Behind
With the launch of new ships, Carnival aims to formulate measured capacity growth over time that allows its global fleet to meet escalating demand for cruise vacations around the world. Also, it aspires to provide guests with a remarkable vacation experience at an exceptional value.
Carnival has adopted a strategy to grow beyond its familiar itineraries and capitalize on new markets. The Asian source market for cruises is expected to continue to grow significantly on the back of higher consumer demands.
These countries boast of a rapidly developing cruise market with passenger numbers soaring over the past few years which are expected to rise further. A growing middle-class with high disposable income makes these markets an attractive bet for Carnival. Additionally, an increasing number of ports and tourist destinations in Asia present tremendous growth opportunity for the cruise industry and Carnival expects to continue profitably growing its presence in China and throughout Asia.
In fact, despite an economic slowdown in China, the company continues to reinforce its leadership position in the rapidly growing cruise market of the country through increased capacity. Also, with AIDA and Carnival Cruise Line brands joining Costa Cruises and Princess Cruises in China in 2017, Carnival will have four brands in this booming market—offering more variety than any other company.
In a bid to expand its leading presence in China, Carnival has also entered into a joint venture with the country’s largest shipbuilder – China State Shipbuilding Corporation. The joint venture for the first ever cruise ships to be built in China, supports the country’s efforts to prioritize cruise industry growth in its five year economic development plan. The first such Chinese-built ship is slated to be delivered in 2023.
Bottom Line
Shares of Carnival have outperformed the broader Zacks categorized Leisure & Recreation Services industry over the past one year. While the stock rallied 12.4%, the broader industry witnessed a gain of 9.2% in the same time period.
Moreover, recently, the company reported its first-quarter fiscal 2017 results, wherein earnings beat the Zacks Consensus Estimate while revenues came in line. The strong results also led the company to raise its fiscal 2017 guidance. Meanwhile, management noted that cumulative advance bookings for the remainder of 2017 are well ahead of the year-ago level at significantly higher prices.
However, Carnival faces stiff competition from other cruise operators such as Royal Caribbean Cruises Ltd. (RCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) . Moreover, increasing fuel costs, negative currency translation along with macroeconomic issues in key operating regions remain potent headwinds to the company’s performance.
Nevertheless, we note that Carnival is the largest leisure travel company in the world, with a portfolio of 10 cruise brands, which together operate 102 ships. It also visits more than 700 ports around the world, adding up to 226,000 lower berths.
Going forward, Carnival's planned launch of new ships, its strategy to tap into the fast-growing Asian markets along with initiatives to drive revenue yields are likely to prove beneficial.
Carnival currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the industry is The Marcus Corporation (MCS - Free Report) , which sports a Zacks Rank #1. While the company’s long-term growth estimate is 15% the industry’s average is 12.4%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>