CCL – Market expectations are for Uniform ROA regression, but management is confident about demand, earnings, and asset utilization

• Carnival Corporation (CCL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.5x Uniform P/E, implying bearish expectations for the firm. However, management is confident about improving demand, earnings, and asset utilization
• Specifically, management is confident in their ability to accelerate demand and rightsize their capacity, and they are confident they are still positioned to beat last year’s record earnings. Additionally, they are confident about the sustainability of favorable net cruise revenue impacts and they are confident yields and occupancy are both improving.