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CCL Stock Before Q2 Earnings: Should You Buy Now or Wait for Results?

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Key Takeaways

  • CCL is expected to post 118.2% EPS growth in Q2, driven by higher pricing and strong booking volumes.
  • Revenue estimates imply a 7.4% year-over-year rise, with robust onboard spending aiding top-line gains.
  • Elevated costs and macro pressures may weigh on Carnival's fiscal second-quarter margins.

Carnival Corporation & plc (CCL - Free Report) is scheduled to release second-quarter fiscal 2025 results on June 24, 2025. 

The Zacks Consensus Estimate for CCL’s fiscal second-quarter earnings per share (EPS) is pegged at 24 cents, suggesting 118.2% growth from 11 cents reported in the prior-year quarter. The consensus mark for earnings has remained unchanged over the past 60 days.

CCL Earnings Estimate Trend

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The consensus mark for fiscal second-quarter revenues is pegged at $6.21 billion, indicating growth of 7.4% from the year-ago quarter’s reported figure.
Carnival has an impressive earnings surprise history. CCL’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 458.4%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CCL Earnings Surprise History

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Q2 Earnings Whispers for CCL Stock

Our proven model predicts an earnings beat for Carnival this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. 

CCL’s Earnings ESP: Carnival has an Earnings ESP of +4.81%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Carnival’s Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Influence Carnival’s Q2 Results

Carnival’s fiscal second-quarter performance is expected to have benefited from strong momentum in booking trends, robust onboard spending and continued execution across its multi-brand global portfolio. With demand levels holding firm and strategic pricing initiatives gaining traction, the company appears well-positioned to sustain its growth trajectory in the to-be-reported quarter.

Higher pricing across core itineraries and strength in booking volumes are likely to have provided a solid foundation for the company’s fiscal second-quarter top line. CCL exited the Wave season with more than 80% of full-year capacity already on the books and at higher prices, indicating continued pricing discipline and a solid revenue visibility framework.

Our model estimates fiscal second-quarter passenger ticket revenues to rise 5.6% year over year to $3.96 billion. We expect onboard and other revenues to increase 9.3% year over year to $2.21 billion.

Carnival’s ongoing efforts to streamline its portfolio and invest in high-return opportunities are likely to have aided the company’s performance in the fiscal second quarter. Developments — including the integration of P&O Cruises Australia into Carnival Cruise Line and enhancements to the AIDA fleet — reflect a focus on optimizing brand positioning and capital efficiency. Additionally, the sale of Seabourn Sojourn and the reallocation of resources toward newer, more efficient vessels are likely to have aided CCL’s performance in the fiscal second quarter.

However, an uncertain macroeconomic environment and potential softness in North American demand could temper the company’s top-line growth in the fiscal second quarter.

Elevated dry dock and charter hire costs, labor inflation, and exposure to fuel price volatility and foreign exchange headwinds are likely to have hurt the bottom line in the fiscal second quarter. Per our model, total operating expenses in the fiscal second quarter are anticipated to rise 7.3% year over year to $5.6 billion.

CCL Stock Price Performance & Valuation

Carnival shares have risen 11.4% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s growth of 5.4%. The stock has also outpaced the S&P 500’s rise of 5.6%. The company’s peers, including Royal Caribbean Cruises Ltd. (RCL - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , have rallied 24.8% and 10.7%, respectively, while shares of Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) have lost 8.4% in the same time frame.

CCL Three-Month Price Performance

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From a valuation perspective, Carnival stock is currently trading at a discount. Carnival is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.80X, well below the industry average of 17.70X. Other industry players, such as Royal Caribbean, OneSpaWorld Holdings and Norwegian Cruise, have a P/E of 16.26X, 18.56X and 8.29X, respectively.

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Investment Considerations for CCL Stock

Carnival is focused on leveraging strong consumer demand and an optimized global fleet to drive long-term growth while executing its financial recovery strategy. The company continues to invest in high-return initiatives such as destination development, fleet enhancements and brand-focused marketing to elevate the guest experience and sustain pricing momentum. Differentiated offerings — including the upcoming Celebration Key and fleet modernization programs like AIDA Evolution — are expected to support higher yields and onboard revenues. With more than 80% of 2025 capacity already booked at higher prices and record customer deposits in place, Carnival is well-positioned to deliver improved earnings and generate stronger cash flows into 2025.

Despite recent refinancing efforts, Carnival’s high debt levels continue to constrain financial flexibility. Additionally, any softening in North American consumer demand or normalization in onboard spending trends could pressure near-term revenue growth. Broader macroeconomic uncertainties and geopolitical disruptions may weigh on the booking momentum and cost structure in the quarters ahead.

How Should You Play CCL Pre-Q2 Earnings?

Carnival’s upcoming fiscal second-quarter results are expected to reflect solid underlying fundamentals, including robust booking trends, higher pricing and improved onboard spending. The company’s strategic investments in fleet optimization and destination development further reinforce its long-term growth prospects. Additionally, strong forward bookings and record customer deposits point to healthy demand momentum heading into the second half of 2025.

That said, elevated cost pressures, macroeconomic uncertainties and lingering concerns around debt levels warrant a cautious approach in the near term. 

Given these factors, investors are advised to hold existing positions and refrain from initiating new ones until after the fiscal second earnings release. This is likely to provide greater visibility into the sustainability of Carnival’s growth trajectory.

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