Celebration Key

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American Carnival cruise passengers drown at new Bahamas resort
NBC News· 2025-08-18 00:10
The Royal Bahamas police say the two Americans, both in their 70s, died within hours of each other at this private Carnival Cruise Line destination called Celebration Key. Investigators are describing both events as drowning incidents. First, police say late Friday morning, a 79-year-old man became unresponsive while snorkeling at a beach. Then that afternoon, investigators say a 74 year old woman who sailed on a different ship became unresponsive while swimming in a pool.Both times a lifeguard gave assista ...
Carnival Cruise Line's 'new exclusive destination' opens
Fox Business· 2025-07-19 14:05
Group 1 - Carnival Cruise Line has officially opened its first exclusive destination, Celebration Key, in the Bahamas, welcoming guests from the Carnival Vista [1][5] - Celebration Key is designed to cater to all ages, featuring five distinct areas of entertainment [1] - The destination is expected to attract approximately two million guests in its first year, significantly benefiting the local economy of Grand Bahama [6] Group 2 - Christine Duffy, president of Carnival Cruise Line, highlighted the partnership with the people of Grand Bahama and noted that this is the first major project completed on the island in over 20 years [2] - Celebration Key includes various attractions such as a ten-story "Suncastle" with water slides, an adult-friendly area called Calypso Lagoon, and a family-friendly portal named Starfish Lagoon [8] - The destination will host 20 Carnival ships from ten U.S. homeports following its grand opening [5]
Full Steam Ahead: The Bullish Case for Carnival Stock
MarketBeat· 2025-07-18 13:08
Core Viewpoint - Carnival Corporation's stock is experiencing a significant upward trend, driven by improved investor sentiment and a price target increase from Citigroup to $37.00 [1][2] Financial Performance - The company reported record revenues of $6.3 billion, supported by strong ticket sales and onboard spending, indicating robust pricing power [4] - Adjusted net income more than tripled year-over-year, showcasing efficient operations and strong margin expansion [4] - Customer deposits for future cruises reached a record $8.5 billion, providing visibility into future revenues and enhancing financial stability [4] Demand and Capacity - Ship occupancy reached 104%, reflecting exceptionally strong demand and maximizing revenue from available berths [5] Debt Management - Carnival is actively reducing its debt burden, having closed a $3.0 billion senior notes offering to replace high-interest debt with lower-cost alternatives [6][7] - This strategy is expected to lower annual interest payments significantly, benefiting net income and potential earnings per share [8] Credit Rating Improvement - Credit agencies S&P and Fitch upgraded Carnival's credit rating to BB+, moving closer to an investment-grade rating, which could lower borrowing costs and attract institutional investors [9][10] Growth Initiatives - Carnival is investing in high-margin projects, including the $600 million Celebration Key destination, set to open in July 2025, which will enhance revenue capture [12][13] - The upcoming Carnival Rewards loyalty program, launching in 2026, aims to increase customer retention and spending [14] Overall Investment Narrative - The investment case for Carnival has evolved from a recovery story to a growth narrative, supported by strong operational demand, financial de-risking, and clear growth catalysts [15][16]
Can Carnival's Destination Strategy Power a New Phase of Yield Growth?
ZACKS· 2025-07-08 14:15
Core Insights - Carnival Corporation & plc (CCL) is focusing on a high-margin, experience-led strategy by investing in exclusive Caribbean destinations to enhance revenue streams [1] - The centerpiece of this strategy is Celebration Key, a 275,000-square-foot lagoon destination set to open in July, which is expected to drive brand engagement and yield premiums [2] - Carnival is also expanding its "Paradise Collection" with enhancements to existing properties to increase guest throughput and revenue per passenger [3] Revenue Growth Strategy - By leveraging unique land-based assets and extending the advanced booking window, the company aims to optimize pricing and enhance consumer conversion [4] - With over 2 million annual visitors expected across its properties, Carnival anticipates a significant impact on yield and per-passenger spending [5] - For fiscal 2025, Carnival expects net yields to be approximately 5.6% higher than 2024 levels [5] Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) has a destination-first strategy, with over 70% of its Caribbean itineraries including private destinations, expected to rise to 90% by 2027 [6] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its private island, Great Stirrup Cay, to double its capacity by 2026, supporting stronger onboard monetization [7] Financial Performance - CCL shares have increased by 49.5% in the past three months, outperforming the industry's growth of 26.5% [8] - The company is optimistic about the Celebration Key opening, supported by strong early bookings, and expects FY25 net yields to rise by 5.6% over FY24 [9] - CCL trades at a forward price-to-earnings ratio of 13.82X, significantly below the industry average of 19.68X [10] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 38% and 13.4%, respectively [11]
3 Reasons to Buy Carnival Stock Right Now
The Motley Fool· 2025-06-29 16:49
Core Viewpoint - Carnival is experiencing strong demand and financial recovery, making its stock an attractive investment opportunity despite high debt levels [1][10]. Group 1: Demand and Revenue Growth - Carnival is the largest cruise operator globally, with record demand for its cruises, surpassing pre-pandemic sales levels [2][4]. - In Q2 of fiscal 2025, revenue increased by 8.6% year over year, with total deposits reaching a record $8.5 billion [2][4]. - Operating income nearly doubled year over year to almost $1 billion, and adjusted net income more than tripled, with EPS of $0.35 exceeding expectations [5]. Group 2: Future Investments - Carnival is investing in new ships and upgrades to maintain strong demand, with one new ship scheduled for delivery this year and four more on order for 2027 to 2032 [6][7]. - The company is launching a new resort, Celebration Key, in the Bahamas, which can accommodate two million guests annually, enhancing its offerings [8]. - Additional experiences, RelaxAway and Isla Tropicale, are set to launch next year, along with a new membership program to drive repeat business [9]. Group 3: Debt Management and Financial Stability - Carnival's total debt stands at over $27 billion, down nearly $10 billion from its peak of $32 billion at the end of 2022, with efficient debt repayment strategies [10]. - The company received upgrades from Fitch and S&P Global, now just one notch away from an investment-grade rating, indicating improved financial health [11]. - Carnival's stock trades at a forward P/E ratio of 12 and a P/S ratio of just over 1, suggesting it is undervalued [11].
2 Top Stocks That Could Soar in 2025 and Beyond
The Motley Fool· 2025-06-28 08:50
Group 1: Carnival - Carnival is experiencing strong demand and financial performance, with fiscal Q2 revenue reaching $6.3 billion, leading to a trailing-12-month revenue of $25.4 billion, surpassing pre-pandemic levels of $20.8 billion in fiscal 2019 [3][5] - The stock price has more than doubled in the past three years, and the current forward price-to-earnings multiple is 12.5, indicating potential for further shareholder returns through improved margins [4] - Adjusted net income for Carnival exceeded guidance at $470 million, with expectations to reach $2.7 billion for the full year, up from $1.9 billion last year [5] - The launch of Celebration Key as a new cruise destination is expected to drive profitable growth, with attractions designed to enhance guest experience and increase ticket prices and margins [6][7] - Wall Street is underestimating Carnival's transformation into a brand that offers exclusive destinations, which could lead to attractive returns for shareholders [8] Group 2: Nintendo - Nintendo's stock has seen significant appreciation, with a 338% increase since late 2016, outperforming the S&P 500's 172% return [9] - The video game industry is valued at $180 billion, with Nintendo owning valuable intellectual properties like Mario Bros and Zelda, and the Switch console achieving record sales of 152 million units [10] - The recent launch of Switch 2 has been successful, selling over 3.5 million units in the first four days, indicating strong market demand [10] - While hardware sales are low-margin, Nintendo expects to sell more games for Switch 2 than the original Switch sold in its first 10 months, setting the stage for strong earnings growth [11] - Analysts have a price target of $34.90 for Nintendo, suggesting a 52% upside from the current share price of $23, with sales expected to double this year [13]
CCL vs. RCL: Which Cruise Line Stock is the Smarter Buy Right Now?
ZACKS· 2025-06-27 15:06
Core Insights - Consumer demand for experiential travel is rebounding, benefiting cruise operators like Carnival Corporation & plc (CCL) and Royal Caribbean Cruises Ltd. (RCL) [1] - Both companies are leveraging strong brand portfolios and improving fundamentals to capitalize on elevated demand and pricing power [1] Carnival Corporation (CCL) - Carnival is achieving robust yield growth and operational momentum, exceeding its 2026 targets for EBITDA per berth growth and return on invested capital 18 months ahead of schedule [3] - The company is set to launch Celebration Key, a flagship private Caribbean destination, and is enhancing its "Paradise Collection" strategy with upgrades to existing destinations [4] - Carnival is revamping its fleet and launching a new loyalty program, Carnival Rewards, expected to boost guest engagement [5] - Financially, Carnival has refinanced $7 billion of debt and improved its net debt-to-EBITDA ratio from 4.1x to 3.7x in Q2 2025, focusing on regaining investment-grade status [6] Royal Caribbean Cruises Ltd. (RCL) - Royal Caribbean is executing its "Perfecta Performance" strategy, reporting yield growth of 5.6% and a 35% EBITDA margin in Q1 2025, driven by strong demand and pricing power [7] - The company is expanding its exclusive destination portfolio with the Royal Beach Club in Nassau, aimed at enhancing guest engagement and boosting ancillary revenues [8] - RCL's digital initiatives, including a widely adopted mobile app, are improving direct bookings and revenue capture [9] - However, RCL faces near-term cost pressures related to ship deployment and elevated expenses tied to destination rollouts and dry dock activities [10] Financial Performance and Valuation - The Zacks Consensus Estimate for Carnival's fiscal 2025 sales and EPS suggests increases of 5.4% and 38%, respectively, with earnings estimates rising 3.8% in the past 60 days [11] - For Royal Caribbean, the estimates indicate year-over-year increases of 9.4% in sales and 30.7% in EPS, with a 6% rise in earnings estimates over the same period [13] - Carnival stock has increased by 31.7% over the past three months, while Royal Caribbean shares have risen by 42.6% [15] - Carnival's forward P/E ratio is 12.92X, below the industry average of 18.59X, while RCL's is 17.92X [18] Investment Outlook - Carnival presents a more attractive near-term buying opportunity due to operational efficiency and financial gains, while RCL may require a wait-and-see approach due to cost pressures [27][28]
Why Carnival Stock Surged 27% in May
The Motley Fool· 2025-06-04 15:32
Core Viewpoint - Carnival's stock has shown significant recovery, jumping 27% in May after a period of volatility and concerns regarding debt and regulatory pressures [1][8]. Financial Performance - For the fiscal first quarter of 2025, Carnival reported a revenue increase of 7% year-over-year to $5.8 billion, with operating income nearly doubling to $543 million [3]. - Advanced booking positions matched last year's record highs, and bookings for 2026 exceeded previous records, with total deposits reaching a first-quarter record of $7.3 billion [3]. Business Strategy - Management is focused on driving demand and improving cost efficiency through a robust digital advertising campaign and the promotion of its exclusive resort, Celebration Key [5]. - The company is also ordering new ships to meet growing demand and enhance sales growth over the coming years [5]. Debt Management - Carnival has made significant strides in debt reduction, refinancing $5.5 billion of debt with lower-interest notes, which is expected to save $145 million in annual interest expenses [6]. - Despite these efforts, total debt remains high at $27 billion, which is above historical levels [6]. Market Sentiment - The stock's decline in February was attributed to concerns over tax compliance, but it has since become attractive to bargain hunters, trading at 11 times forward one-year earnings [8]. - An analyst upgrade from HSBC, changing the rating from reduce to hold, contributed to the stock's recent positive momentum [8].
Why Carnival Could Be the Ultimate Non-Tech Growth Stock
MarketBeat· 2025-05-22 21:03
Core Viewpoint - Carnival Corporation is positioned as a leading non-tech growth investment opportunity, driven by a strong recovery in the global leisure travel industry, particularly in the cruise segment [1][2][16]. Financial Performance - In Q1 2025, Carnival reported record revenues of $5.8 billion, a $400 million increase year-over-year, with net yields rising by 7.3% [3]. - Adjusted net income reached $174 million ($0.13 per diluted share), a significant improvement from the previous year's loss, and adjusted EBITDA hit a record $1.2 billion, a 38% increase [4]. - Customer deposits reached a record $7.3 billion, indicating healthy future demand [4]. Strategic Outlook - Carnival has raised its full-year 2025 guidance, projecting adjusted net income of around $2.49 billion ($1.83 per share) and adjusted EBITDA of nearly $6.7 billion, with net yield growth of about 4.7% [5]. - The company expects to meet its 2026 adjusted return on invested capital (ROIC) and adjusted EBITDA per available lower berth (ALBD) a year ahead of schedule, with a projected adjusted ROIC of about 12% for 2025 [7]. Growth Initiatives - The "SEA Change" program is a cornerstone of Carnival's strategy, focusing on sustainable long-term growth and profitability [6]. - Carnival is investing in new revenue streams, including the exclusive destination Celebration Key in Grand Bahama, set to open in July 2025, which is expected to boost ticket revenue and onboard spending [9]. - The company is modernizing its fleet and enhancing private destinations, with a disciplined approach to fleet and capacity management, projecting a modest overall capacity growth of 0.8% for fiscal year 2025 [10][11]. Stock Valuation - Carnival's shares traded around $22.25, with a market capitalization of approximately $25.9 billion, and a trailing P/E ratio of about 16.01 [13][14]. - The forward P/E ratio is approximately 12.93, and the PEG ratio is around 0.54, suggesting the stock may be undervalued relative to its expected earnings growth rate [14][15]. - Earnings per share are projected to grow substantially by around 18.08% for the next year, indicating strong growth potential [15].
CARNIVAL CRUISE LINE UNVEILS AN EXCITING 'INNOVATION ITINERARY' OF NEW SHIPS, FLEET ENHANCEMENTS, DEPLOYMENT PLANS AND EXCLUSIVE DESTINATIONS
Prnewswire· 2025-04-06 22:25
Core Insights - Carnival Cruise Line is outlining its strategic plans for the next five years, focusing on innovation, guest experience, and loyalty enhancement [1][3][20] New Ships - The fourth ship in Carnival's Excel class will be named Carnival Festivale, debuting in spring 2027 from Port Canaveral, Florida [4][5] - Carnival Festivale will feature three new zones, including music-themed venues and immersive experiences [6] - The ship will have 1,000 interconnecting rooms, nearly 70% more than previous Excel ships, to better accommodate families [7] - Carnival Festivale will introduce a new outdoor zone called Sunsation Point, featuring Carnival Waterworks Ultra, the most family-friendly water park at sea [8][9] - The fifth Excel class ship will be named Carnival Tropicale, scheduled for delivery in spring 2028 [12] Deployment Updates - Carnival Festivale will allow Mardi Gras to offer short cruises from Port Canaveral, catering to first-time cruisers and families [15] - Carnival will return to year-round operations in Mobile, Alabama, starting spring 2027 [17] - The company is exploring moving a larger Conquest class ship to Baltimore in 2027 [17] Guest Experience - Carnival will enhance the guest experience on existing ships with strategic improvements, including décor modernization and new dining options [18] Destinations - Carnival is enhancing its exclusive destinations, marketing them as the new Paradise Collection, with a focus on the Caribbean and Mexico [19][25] - The new exclusive destination, Celebration Key, will open in July 2025, designed specifically for Carnival guests [24][25] - RelaxAway, Half Moon Cay will be expanded to accommodate larger ships, with enhancements expected to be completed by summer 2026 [25] Loyalty - Carnival will enhance its existing loyalty program, with details expected to be announced in summer 2025 [20][21]