00:00 Speaker A
CCL’s the ticker symbol out there, folks. They’ve reported quarterly earnings, and we are seeing guidance for adjusted EBITDA in the second quarter just missed estimates here. The cruise line also forecasting a slowdown in net yields in the second quarter. They saw net yields up 7.3% on an annual basis in Q1. They’re projecting 4.4% growth in Q2 here. Shares trying to find their direction here. They were higher as we started talking about the story, and now they’re flat, especially to the downside.
00:33 Speaker B
Yeah, it’s really interesting to see the stock kind of waver back and forth here, because there were with some good news in this report. The company, by all indications, said that bookings are still strong here. I thought that was interesting. Uh, the company talked about that there is sustained demand even for further out sailings. That was according to CEO Josh Weinstein in the statement. He said ticket sales for next year are at record levels as well. The company looking at advanced booking booked position for the remainder of the year that is strong, pricing in constant currency at historical highs for each quarter. So, they’re seeing demand. They’re seeing that pricing that’s high. Um, it just looks like it is perhaps that, uh, little bit of the EBITDA miss for its second quarter that maybe is responsible for this. We should mention the context also. The stock is down here today, right? It’s down about 16%. There’s been a lot of concern about the cruise lines generally, both the consumer, but also the sort of noise that the administration has floated about changing the tax status for some of the cruise lines, most most of which are not domiciled in the US, and of course, their ships are not domiciled in the US. Most analysts don’t necessarily take that seriously, but it is something that has affected sentiment surrounding some of these names.
02:28 Speaker A
Interesting. I’ve only been on a docked cruise liner before. So,
02:34 Speaker B
And and what did you think?
02:36 Speaker A
I thought it was a large vessel.
02:39 Speaker B
Uh I went on one cruise, uh, a very long time ago, and I got Norovirus, unfortunately. It was a decent experience otherwise.
02:48 Speaker A
Oh my goodness. All right, better cruise line experiences to come for both of us here. It’s only up from here.
02:54 Speaker B
Yeah.