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Carnival (CCL) Up 20.6% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have added about 20.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carnival due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Carnival Corporation before we dive into how investors and analysts have reacted as of late.
Carnival's Q2 Earnings & Revenues Top Estimates, FY25 View Up
Carnival reported impressive second-quarter fiscal 2025 (ended May 31, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
This upside was primarily backed by sustained demand strength and robust onboard revenues.
The company surpassed its 2026 SEA Change financial targets 18 months ahead of schedule, with adjusted EBITDA per ALBD growing 52% and adjusted ROIC increasing more than 12.5% in less than two years. Moreover, it also met its third 2026 SEA Change commitment to cut carbon intensity by 20% from the 2019 level. This strong financial outlook underscores the company's operational efficiency and strategic growth initiatives.
Moving ahead, the company aims to continue focusing on its strategy to deliver same-ship, high-margin revenue growth amid favorable booking position, to position for robust revenue visibility and profitability in 2026 and beyond.
CCL’s Q2 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 35 cents, beating the Zacks Consensus Estimate of 24 cents by 45.8%. In the year-ago quarter, CCL posted an adjusted EPS of 11 cents.
Revenues in the quarter totaled $6.33 billion, beating the consensus mark of $6.21 billion by 2%. The metric also increased 9.5% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
During the quarter, passenger ticket revenues amounted to $4.1 billion, up from $3.75 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was $3.96 billion.
Onboard and other revenues increased to $2.22 billion from $2.03 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.21 billion.
Carnival’s Financials
Adjusted net income in the quarter amounted to $470 million, significantly up 250.7% year over year from $134 million. The uptick was attributable to higher ticket prices, increased onboard spending and favorable timing of expenses between the quarters.
Adjusted EBITDA totaled $1.51 billion, up from $1.2 billion reported in the prior-year quarter.
CCL’s Balance Sheet
As of May 31, 2025, cash and cash equivalents were $2.15 billion compared with $1.21 billion as of Nov. 30, 2024. Carnival ended the quarter with liquidity of $5.17 billion. Total debt (current and long-term) as of May 31 was $27.3 billion compared with $27.48 billion as of Nov. 30, 2024.
Bookings Update of Carnival
Carnival continues to capitalize on robust demand, with its cumulative advanced booked position for the remainder of 2025 remaining strong, thanks to robust occupancy and favorable pricing (on cc basis). The company’s strategic yield management approach has driven record-high cumulative advance bookings, with pricing at historical peaks for each quarter and occupancy levels aligning with last year’s records.
Additionally, the booked position for 2026 is in line with 2025 record levels, with historical high prices. With the booking curve extending further than ever before, CCL remains well-positioned for long-term growth.
Total customer deposits as of May 31 were $8.08 billion compared with $7.3 billion reported in the preceding quarter.
CCL Unveils Q3 View & Raises Fiscal 2025 Outlook
For third-quarter fiscal 2025, Carnival expects adjusted EBITDA to be approximately $2.87 billion. It expects adjusted net income to be about $1.8 billion. The company expects adjusted EPS to be nearly $1.30.
For fiscal 2025, the company now anticipates adjusted EBITDA to be approximately $6.9 billion (up from the previous expectation of about $6.7 billion), reflecting more than 10% growth year over year. Adjusted net income is now anticipated to be about $2.69 billion, up from the previously expected value of $2.49 billion. CCL now expects adjusted EPS to be approximately $1.97, up from $1.83 expected earlier.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Carnival has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carnival has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Carnival (CCL) Up 20.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Carnival (CCL - Free Report) . Shares have added about 20.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carnival due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Carnival Corporation before we dive into how investors and analysts have reacted as of late.
Carnival's Q2 Earnings & Revenues Top Estimates, FY25 View Up
Carnival reported impressive second-quarter fiscal 2025 (ended May 31, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.
This upside was primarily backed by sustained demand strength and robust onboard revenues.
The company surpassed its 2026 SEA Change financial targets 18 months ahead of schedule, with adjusted EBITDA per ALBD growing 52% and adjusted ROIC increasing more than 12.5% in less than two years. Moreover, it also met its third 2026 SEA Change commitment to cut carbon intensity by 20% from the 2019 level. This strong financial outlook underscores the company's operational efficiency and strategic growth initiatives.
Moving ahead, the company aims to continue focusing on its strategy to deliver same-ship, high-margin revenue growth amid favorable booking position, to position for robust revenue visibility and profitability in 2026 and beyond.
CCL’s Q2 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 35 cents, beating the Zacks Consensus Estimate of 24 cents by 45.8%. In the year-ago quarter, CCL posted an adjusted EPS of 11 cents.
Revenues in the quarter totaled $6.33 billion, beating the consensus mark of $6.21 billion by 2%. The metric also increased 9.5% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
During the quarter, passenger ticket revenues amounted to $4.1 billion, up from $3.75 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was $3.96 billion.
Onboard and other revenues increased to $2.22 billion from $2.03 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.21 billion.
Carnival’s Financials
Adjusted net income in the quarter amounted to $470 million, significantly up 250.7% year over year from $134 million. The uptick was attributable to higher ticket prices, increased onboard spending and favorable timing of expenses between the quarters.
Adjusted EBITDA totaled $1.51 billion, up from $1.2 billion reported in the prior-year quarter.
CCL’s Balance Sheet
As of May 31, 2025, cash and cash equivalents were $2.15 billion compared with $1.21 billion as of Nov. 30, 2024. Carnival ended the quarter with liquidity of $5.17 billion. Total debt (current and long-term) as of May 31 was $27.3 billion compared with $27.48 billion as of Nov. 30, 2024.
Bookings Update of Carnival
Carnival continues to capitalize on robust demand, with its cumulative advanced booked position for the remainder of 2025 remaining strong, thanks to robust occupancy and favorable pricing (on cc basis). The company’s strategic yield management approach has driven record-high cumulative advance bookings, with pricing at historical peaks for each quarter and occupancy levels aligning with last year’s records.
Additionally, the booked position for 2026 is in line with 2025 record levels, with historical high prices. With the booking curve extending further than ever before, CCL remains well-positioned for long-term growth.
Total customer deposits as of May 31 were $8.08 billion compared with $7.3 billion reported in the preceding quarter.
CCL Unveils Q3 View & Raises Fiscal 2025 Outlook
For third-quarter fiscal 2025, Carnival expects adjusted EBITDA to be approximately $2.87 billion. It expects adjusted net income to be about $1.8 billion. The company expects adjusted EPS to be nearly $1.30.
For fiscal 2025, the company now anticipates adjusted EBITDA to be approximately $6.9 billion (up from the previous expectation of about $6.7 billion), reflecting more than 10% growth year over year. Adjusted net income is now anticipated to be about $2.69 billion, up from the previously expected value of $2.49 billion. CCL now expects adjusted EPS to be approximately $1.97, up from $1.83 expected earlier.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, Carnival has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carnival has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.