Carnival Retreats After Earnings Beat, Raised Guidance

Carnival stock slid from near a buy point early Monday after clearing third-quarter estimates before the opening bell. Rival cruise line stocks eased in early trade.

↑
X

NOW PLAYING
Stocks Rally After Micron Results: Amazon, Robinhood, TJX In Focus

Carnival (CCL) reported earnings of $1.27 per share adjusted, up from 86 cents per share last year. FactSet expected adjusted earnings of $1.17 per share. Revenue increased 15% to a record $7.89 billion, compared to views for $7.82 billion.

The cruise line’s revenue growth slowed over the last seven quarters after rebounding following the coronavirus pandemic.

Carnival also noted record operating income of $2.2 billion, up $554 million from last year.

CEO Josh Weinstein said unit operating income increased by 26% due to operational improvements and high-margin, same-ship yield growth. Carnival’s advanced booked position for 2025 is already ahead of 2024’s record, with higher prices than last year. Weinstein added that Carnival is well-positioned with a stronger base of business for 2025 and set for a record start to 2026.

“With nearly half of 2025 booked and less inventory remaining for sale than the prior year, we are leveraging strong demand to achieve record ticket pricing,” Weinstein said in the release. “Likewise, 2026 is off to an unprecedented start achieving record booking volumes in the last three months.”

Carnival hiked its 2024 guidance based on the strong quarterly results.

The cruise giant expects net yields to increase about 10.4% compared to last year, up from its June guidance of 10.25% growth. Carnival sees adjusted earnings before interest, taxes, depreciation and amortization increasing around 40% to about $6 billion, increasing from its Q2 guidance for $5.83 billion. FactSet expects full-year EBITDA of $5.92 billion.

For Q4, Carnival expects net yields up 5% with a 20% increase in adjusted EBITDA to $1.14 billion. Analysts predict Q4 EBITDA of $1.16 billion.

Carnival Stock Pares Losses

Carnival stock tumbled as low as 17.33 shortly after Monday’s open, but pared losses. Shares are down 1.6% to 18.24, back above the 21-day line.

CCL stock is trading below a 19.09 buy point for a cup-with-handle base.

Rival Royal Caribbean (RCL) dipped 0.9%, falling back into a buy zone for a cup-with-handle base. RCL stock also is off early lows. Shares broke out above the 169.47 buy point on Sept. 30.

Norwegian Cruise Line (NCLH) fell 1.3% Monday morning, right around the 20.65 buy point for a double-bottom base.

NCLH stock, off Monday’s lows, broke out on Sept. 20.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

YOU MAY ALSO LIKE:

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

Looking For The Next Big Stock Market Winners? Start With These 3 Steps

Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros

Learn How To Time The Market With IBD’s ETF Market Strategy