With shares down almost 80% over the previous five years, Carnival Corporation (NYSE: CCL) has been a punishing investment for many long-term shareholders as it has grappled with headwinds like the COVID-19 pandemic, inflation, and rising interest rates. Below is an exploration of Carnival's challenges and opportunities over the next half-decade to determine how they might impact the future performance of its stock.

The COVID-19 pandemic hit few industries harder than cruising, which saw operations suspended or restricted for much of 2020 and 2021. While Carnival has enjoyed an operational resurgence after this challenging period, the scars remain on its balance sheet. The company's most recent earnings report highlights this complicated situation.

Third-quarter revenue soared to an all-time high of $6.9 billion, a sharp increase from the $6.5 billion earned in the corresponding quarter of 2019, the last pre-pandemic year. Profitability is also rebounding, with Carnival generating third-quarter operating income of $1.62 billion, compared to $1.89 billion in 2019.

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Source Fool.com