Core Viewpoint - The company, Carnival Corp, is effectively managing its substantial debt incurred during the COVID-19 pandemic, presenting a compelling investment opportunity despite market skepticism [1][5][19]. Company Overview - Carnival Corp operates a fleet of 29 ships and owns 93 different vessels across various brands, including Princess, Holland America, and Cunard [4][5]. - The company has accumulated approximately $24 billion in long-term debt due to the pandemic, resulting in annual interest payments of around $2 billion [5][16]. Financial Performance - In the first quarter, Carnival reported record revenue of $5.8 billion, a 7.5% increase year-over-year, and doubled its operating income [7][8]. - Advanced bookings for the fiscal year are at record highs, leading to total customer deposits of $7.3 billion [8]. - The company raised its earnings per share guidance from $1.70 to approximately $1.83, with analysts projecting a 4% sales growth for the year [8][19]. Industry Trends - The cruise industry is experiencing a resurgence, with the Cruise Lines International Association forecasting 37.7 million ocean cruise passengers in 2025, a 9% increase from the previous year [13]. - The leisure cruise market is expected to grow at an annualized rate of nearly 6% through 2034, driven by increasing demand and limited capacity [15]. Debt Management - Carnival's interest payments are projected to decrease from over $2 billion in 2023 to under $1.8 billion in 2024, as the company continues to pay down its debt [17][18]. - The company has reduced its long-term debt by nearly $2.5 billion over the past year while still reporting profits [17]. Market Position - Carnival's stock is trading at less than 13 times its earnings guidance, presenting a significant value opportunity compared to its profitability [19]. - Analysts maintain a strong buy rating for Carnival, with a consensus price target of $27.69, indicating a potential upside of nearly 20% from its current price [20].