Carnival Corporation Prepares for Q2 Earnings Report Amidst Robust Growth

With a market capitalization of $21.8 billion, Carnival Corporation & plc (CCL) operates as a leading cruise line, catering to leisure travelers. Headquartered in Miami, Florida, the company offers vacations to popular destinations worldwide, including the Caribbean, Europe, Alaska, and Asia. The fiscal Q2 earnings announcement for 2025 is expected on Tuesday, June 24.

Analysts Forecast Significant Profit Growth

Before the upcoming earnings release, analysts anticipate CCL will report a profit of $0.23 per share. This represents a substantial increase of 109.1% from $0.11 per share in the same quarter last year. CCL has consistently outperformed Wall Street’s bottom-line estimates in the last four quarters, with earnings of $0.13 per share in the recent quarter exceeding the consensus estimate by a remarkable 550%.

Full-Year Projections Point to Continued Growth

For the entire fiscal year, analysts expect CCL to report earnings of $1.85 per share, marking a 30.3% increase compared to $1.42 in fiscal 2024. Additionally, the company’s earnings per share (EPS) are forecasted to rise 13.5% year-over-year, reaching $2.10 in fiscal 2026.

Stock Performance Outshines Market Benchmarks

Over the past 52 weeks, CCL shares have surged by 23.7%, outperforming the S&P 500 Index, which rose 8.7%, and the Consumer Discretionary Select Sector SPDR Fund (XLY), which gained 10.6% during the same period.

Strong Q1 Results but Mixed Stock Movement

On March 21, CCL announced better-than-expected earnings for the first quarter. The company reported revenue of $5.8 billion, a 7.5% increase year-over-year, which surpassed analyst expectations by 1.1%. High demand for cruise vacations, alongside a surge in customer deposits that hit a Q1 record of $7.3 billion, contributed to this growth. Increased ticket prices and more pre-cruise onboard sales also played significant roles. Adjusted EPS of $0.13 marked a notable improvement from an adjusted loss of $0.14 per share in the same quarter last year. Additionally, operating income nearly doubled, increasing by 96.7% year-over-year to $543 million.

Despite this strong performance, CCL’s shares fell 1.2% on the announcement day but rebounded by 2.4% in the subsequent trading session.

Analyst Ratings Reflect Strong Optimism

Wall Street analysts share a positive outlook for CCL’s stock, with an overall “Strong Buy” rating. Out of 25 analysts covering the stock, 18 recommend “Strong Buy,” one suggests a “Moderate Buy,” and six rate it as “Hold.” The average price target for CCL stands at $27.88, indicating a potential upside of 49% from current trading levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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