Carnival Corporation (NYSE: CCL) reported second-quarter results for its November fiscal year, revealing revenues of approximately $6.33 billion, a 9% increase compared to the previous year, and net income rising to $565 million from $92 million a year ago. The company has also raised its full-year guidance, projecting adjusted net income to be 40% higher than in 2024. Over the past month, CCL stock is up by about 11% and has increased close to 40% over the past 12 months.
Carnival’s ongoing success is attributed to rising demand for leisure cruising post-COVID-19. The company is expanding its offerings with plans to open a new destination, Celebration Key, in the Bahamas by July 19, 2025. Despite its recent gains, analysts express caution regarding the stock due to Carnival’s weak financial condition, with a total debt of $28 billion against a market capitalization of $34 billion, resulting in a debt-to-equity ratio of 84.4%.
Comparative valuation shows CCL’s price-to-sales ratio at 1.3, compared to 3.1 for the S&P 500, alongside a price-to-earnings ratio of 16.4 vs. 26.9 for the benchmark. However, recent downturn performance raises concerns, as CCL stock has suffered significant losses in past market crashes—from a peak-to-trough decline of 79.6% during 2022, and 84.6% in 2020 during the pandemic.
