Did you analyze how Carnival (CCL Quick QuoteCCL - Free Report) fared in its international operations for the quarter ending May 2025? Given the widespread global presence of this cruise operator, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Our review of CCL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $6.33 billion, marking an increase of 9.5% from the year-ago quarter. We will next turn our attention to dissecting CCL's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Dive into CCL's International Revenue Trends

Of the total revenue, $315 million came from Australia during the last fiscal quarter, accounting for 4.98%. This represented a surprise of -11.19% as analysts had expected the region to contribute $354.7 million to the total revenue. In comparison, the region contributed $420 million, or 7.23%, and $355 million, or 6.14%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Other International contributed $275 million in revenue, making up 4.35% of the total revenue. When compared to the consensus estimate of $212.65 million, this meant a surprise of +29.32%. Looking back, Other International contributed $296 million, or 5.09%, in the previous quarter, and $252 million, or 4.36%, in the same quarter of the previous year.

Europe accounted for 31.04% of the company's total revenue during the quarter, translating to $1.96 billion. Revenues from this region represented a surprise of +4.11%, with Wall Street analysts collectively expecting $1.89 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $1.63 billion (27.99%) and $1.63 billion (28.21%) to the total revenue, respectively.

Revenue Forecasts for the International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Carnival will report a total revenue of $8 billion, which reflects an increase of 1.3% from the same quarter in the previous year. The revenue contributions are expected to be 6.3% from Australia ($505.18 million), 3.6% from Other International ($284.87 million) and 30% from Europe ($2.4 billion).

For the full year, the company is projected to achieve a total revenue of $26.37 billion, which signifies a rise of 5.4% from the last year. The share of this revenue from various regions is expected to be: Australia at 6.4% ($1.68 billion), Other International at 4% ($1.04 billion) and Europe at 29.3% ($7.73 billion).

Closing Remarks

Carnival's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

At present, Carnival holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Carnival's Recent Stock Market Performance

The stock has witnessed an increase of 13% over the past month versus the Zacks S&P 500 composite's an increase of 6%. In the same interval, the Zacks Consumer Discretionary sector, to which Carnival belongs, has registered an increase of 6.1%. Over the past three months, the company's shares saw an increase of 51.5%, while the S&P 500 increased by 7.9%. In comparison, the sector experienced an increase of 10.4% during this timeframe.