Why Carnival Cruise Lines Rallied, Then Plunged Today

• Carnival defeated revenue and profits expectations in the third quarter.

• The company also raised its expectations for this year for the third quarter in a row.

• However, the stock decreased, and perhaps due to the company’s re -financing plans.

• 10 shares we love are better than Carnival Corp. ›

shares Carnival trips lines (NYSE: CCL) (NYSE: CUK) They were on a journey of a cylinder today, initially up to 6.1 % this morning, before falling into red, and decreased by 4.3 % a day starting at 3:30 pm Easter.

Carnival presented the third quarter profit report this morning, which continued a series of impressive revenues and profit victory.

So, what caused the subsequent sale? The reason is likely to be related to a carnival plans to reduce potential shareholders to pay its convertible suspended debts.

In the third quarter, a carnival of revenue of $ 8.12 billion, an increase of 3.3 %, with an increase in profits other than the generally accepted accounting principles (generally accepted accounting principles) by 12.3 % to $ 1.43. Both people are easily dominated by expectations.

Carnival also defeated the painting on many granular scales, such as high net returns, reducing costs for each day available marina, modified profits before benefits, taxes, consumption, firefield (EBITDA), and others.

Not only that, but a Carnival raised its entire 2025 directives in all these financial measures as well.

A quarter of victory and the League may have led to the initial estimate of stocks. But a reflection appeared when investors realized that the carnival had also issued a memorandum on recovering all its distinctive open notes, which total about $ 1.31 billion as of the end of August. In her press statement, Carnival said he sees the recovery of all notes with a mixture of money and fairness.

Any shares will be reduced to current shareholders, which have caused a worker to mitigate in the future, and give others an excuse to achieve profits after strong stocks during the past few months.

The value of the carnival market is 39.4 billion dollars in addition to its current debt of about $ 25.4 billion, at the value of an institution of about 64.8 billion dollars. Meanwhile, EBITDA’s guidelines for this year are $ 7.1 billion, which leads to 9.1 EV/ebitda. This is not particularly expensive, but it is also not a deal for the company that has a lot of debts.

The administration said it is looking to pay the debt rate to EBitDA less than 3, and this number now is 3.57. The payment of the open wage will help, but there are still some ways to go to reduce this financial lever. If Carvele achieves its goal, it may be able to get an investment category classification and thus a better interest rate on the large debt burden.

Carvele has made a luxurious performance since the epidemic, but the debt hole he dug for himself during a 1.5 -year -old stoppage will take some time to pay. This may maintain the arrow despite the growth of the company’s distinguished profits.

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Billy Durachtein And/or its customers He has no position in any of the mentioned stocks. Motley Fool Cornive Corp. recommends. Motley Fool has a disclosure policy.

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