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Is Carnival (CCL) A "Buy" Heading into Q2 Earnings Announcement?

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Cruise and vacation company Carnival (CCL - Free Report) is set to report Q2 results on Tuesday before the opening bell. Carnival, a Zacks Rank #3 (Hold), has exceeded the earnings mark in each of the last six quarters. But amid recent signs of weakening summer travel demand, is Carnival a buy prior to the release?

Analysts are expecting the company to post a minor loss of -$0.01/share, reflecting a 96.8% improvement relative to the same quarter last year. Sales are projected to have increased 15.1% to $5.65 billion.

Carnival has surpassed earnings estimates in each of the past six quarters. The company has delivered a trailing four-quarter average earnings surprise of 22%.

Strong brand recognition and a strategic marketing campaign bode well for Carnival. The cruise liner remains focused on its fleet optimization and expansion. Still, travel demand has begun to normalize following the post-pandemic boom.

Our proprietary Zacks Earnings ESP predicts another earnings beat for the upcoming announcement. As always, investors should exercise caution ahead of any earnings release.

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