September 30, 2024 13:55 GMT
TRANSPORTATION: Carnival (Snr Unsec; B2 Pos/BB/BB Pos) Q3 (3m to August) results
TRANSPORTATION
Stock is -1.5% despite the beat across the board but it did rally into earnings (MTD +11% vs. SPX +1.5%).
Re. € bonds as we have mentioned before they do trade tight to ratings - but there is still double digit tightening into IG ratings - which seems to be only a matter of time if current performance holds. We see leverage at net/gross 4.8x/5x on current FY24 guidance and debt levels.
Co has demonstrated strong governance on the BS paying down a net $6.1b ($4b in pre-payments) last year from only $2.1b in free cash flow. YTD it has net reduced debt by ~$3.6b while again refusing in last earnings call to consider restarting dividends.
We are hoping for similar comments today, call at 3pm London here.
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