Carnival (CCL) CEO Discusses Improved British Ship, Brexit on CNBC

Carnival CEO Arnold Donald discussed with CNBC's Michelle Caruso-Cabrera the company's newly renovated Queen Mary 2 and the effects of Brexit this morning.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Carnival (CCL) - Get Report CEO Arnold Donald discussed the cruise company's recent $132 million renovation on its only ocean liner, the Queen Mary 2, with CNBC's Michelle Caruso-Cabrera on "Squawk Box" Wednesday.

Caruso-Cabrera asked why the Queen Mary 2 is considered an ocean liner, not a cruise ship.

"She is the only ocean liner. What that means is, she is specifically designed to do cross-Atlantic or transatlantic primarily between New York and Southampton (England)," Donald replied, which takes about seven to eight days.

"So are you still allowed to dock over in Southampton even in the wake of Brexit?" Caruso-Cabrera joked.

The biggest impact the U.K.'s decision to leave the European Union will have on the Queen Mary 2 is the decline of the pound, Donald stated on a more serious note. The British pound fell near 1.30 per U.S. dollar this morning, a 31-year low.

"In the U.K., we price in pound sterling," Donald explained. So British passengers will not have to pay higher prices for Queen Mary 2 tickets.

Carnival, a dollar dominated company, will instead have to absorb the currency change cost, he continued.

Shares of Carnival are flat at $43.75 late this morning.

Separately, TheStreet Ratings rated Carnival as a "buy" with a score of B.

This is driven by several positive factors, which can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: CCL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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