Core Viewpoint - Carnival Corporation is expected to report strong demand and alleviate investor concerns regarding a consumer slowdown in its upcoming fourth-quarter financial results [1] Earnings Estimates - Analysts predict Carnival will report fourth-quarter revenue of $6.37 billion, an increase from $5.94 billion in the same quarter last year [2] - Expected earnings per share for the fourth quarter are 25 cents, up from 14 cents per share in the previous year [2] - The company has consistently beaten revenue estimates for six consecutive quarters and earnings per share estimates for over ten quarters [2][3] Analyst Insights - JPMorgan analyst Matthew R. Boss noted a recent sell-off in cruise line stocks, suggesting it may be driven by investor panic rather than actual evidence of a consumer slowdown [4] - Concerns about rising supply in the Caribbean and a potential consumer slowdown in 2026 were highlighted, although strong bookings for early 2026 were reported [5] Key Items to Watch - The upcoming report is anticipated to emphasize consumer demand and future booking strength, with guidance being crucial for share performance in 2025 [5] - Carnival's customer deposits reached a record $7.1 billion in the third quarter, indicating potential strength in future quarters [9] - The company has raised its guidance three times in 2025, and there is significant interest in the 2026 guidance [10] Price Action - Carnival stock is trading at $28.26, with a year-to-date increase of 13.0% in 2025 [11] - In comparison, Norwegian shares have decreased by 16.6% in 2025, while Royal Caribbean shares have increased by 25.3% [11]

Core Viewpoint - Stabilis Solutions has secured a 10-year offtake agreement with Carnival Corporation to supply LNG for cruise operations at the Port of Galveston [1] Group 1: Company Overview - Stabilis Solutions, Inc. is a leading provider of clean energy production, storage, and delivery solutions [1] - Carnival Corporation & plc operates in the cruise industry and is listed on both NYSE and LSE [1] Group 2: Agreement Details - The agreement is a definitive 10-year offtake contract aimed at supporting Carnival's operations [1] - This represents the second anchor offtake agreement related to the Galveston LNG project [1]

Core Viewpoint - Cruise stocks are experiencing volatility, and the upcoming earnings report from Carnival could influence the short-term trajectory of the cruise industry [1] Industry Summary - The cruise industry is currently facing challenges, with stock performance being inconsistent [1] - Carnival's earnings report is anticipated to provide insights that may affect investor sentiment and market direction for cruise stocks [1]

Core Viewpoint - Carnival (CCL) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a strong history of exceeding earnings estimates, particularly with an average surprise of 27.08% over the last two quarters [1]. Earnings Performance - In the last reported quarter, Carnival achieved earnings of $1.43 per share, surpassing the Zacks Consensus Estimate of $1.32 per share, resulting in a surprise of 8.33% [2]. - For the previous quarter, Carnival was expected to report earnings of $0.24 per share but delivered $0.35 per share, leading to a significant surprise of 45.83% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Carnival, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, suggesting a high probability of exceeding consensus estimates [6]. Earnings ESP Analysis - Carnival currently has an Earnings ESP of +1.52%, indicating that analysts have recently become more optimistic about the company's earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 suggests that another earnings beat may be imminent, with the next earnings report expected on December 19, 2025 [8].

Core Insights - Carnival Corporation & plc (CCL) is set to announce its fiscal Q4 earnings for 2025 on December 19, with analysts expecting a profit of $0.25 per share, a 78.6% increase from $0.14 per share in the same quarter last year [1] - For the current fiscal year ending in November, CCL is projected to report a profit of $2.17 per share, reflecting a 52.8% growth from $1.42 per share in fiscal 2024, with further expected growth to $2.39 in fiscal 2026 [2] - CCL's stock has increased by 14.2% over the past 52 weeks, outperforming the S&P 500 Index's return of 11.1% and the State Street Consumer Discretionary Select Sector SPDR ETF's 7.4% increase [3] Financial Performance - In Q3, CCL reported a revenue increase of 3.3% year-over-year to a record $8.2 billion, exceeding consensus estimates by nearly 1%, marking the tenth consecutive quarter of record revenues [4] - The adjusted EPS for Q3 climbed 12.6% from the previous year to $1.43, surpassing Wall Street expectations of $1.32 [4] Analyst Ratings - Wall Street analysts maintain a highly optimistic outlook on CCL's stock, with a "Strong Buy" rating overall; among 25 analysts, 18 recommend "Strong Buy," one suggests "Moderate Buy," and six indicate "Hold" [5] - The mean price target for CCL is set at $35.39, suggesting a potential upside of 24.7% from current levels [5]

Core Viewpoint - Carnival Corporation is a leading player in the cruise industry, facing competition but showing potential for growth with upcoming earnings reports [1][5]. Financial Performance - Carnival is expected to report an EPS of $0.25 on December 19, 2025, which is a 78.6% increase from $0.14 in the same quarter last year [2][6]. - Projected revenue for the upcoming quarter is approximately $6.38 billion, reflecting a 7.2% increase year-over-year [2][6]. - The company has a market capitalization of $37 billion and generated $26 billion in revenue over the past year, with operating profits of $4.3 billion and net income of $2.6 billion [3]. Market Valuation - Carnival's P/E ratio is approximately 13.93, with a price-to-sales ratio of about 1.40 and an enterprise value to sales ratio of 2.39, indicating market valuation metrics [4]. Challenges - The company faces margin pressures due to high costs, ship maintenance, and ongoing investments in destinations [5]. - Carnival's debt-to-equity ratio is 2.34, indicating significant financial leverage, while a current ratio of 0.34 suggests potential liquidity concerns [5][6]. - Investors are closely monitoring the upcoming earnings report to assess Carnival's ability to lead market trends into 2026 [5].

Core Insights - Carnival is set to release its earnings on December 18, 2025, with a current market capitalization of $37 billion, revenue of $26 billion, operating profits of $4.3 billion, and net income of $2.6 billion [2] Earnings Reaction History - Historical data shows that in the last five years, Carnival had 19 earnings data points, with 10 positive and 9 negative one-day (1D) returns, resulting in positive returns approximately 53% of the time [8] - The percentage of positive returns drops to 50% when analyzing the last three years, with a median of 5.4% for positive returns and -4.0% for negative returns [8] Trading Strategies - Traders can benefit from understanding the correlation between short-term (1D) and medium-term (5D) returns after earnings announcements, allowing them to position themselves accordingly [6] - A relatively lower-risk approach involves identifying pairs with the highest correlation between 1D and 5D returns to execute trades based on positive 1D returns [6]

Core Viewpoint - Carnival Corporation & plc (CCL) is set to release its fourth-quarter fiscal 2025 results on December 19, with expectations of significant earnings growth and revenue increase compared to the previous year [1][6]. Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal fourth-quarter earnings per share (EPS) is 25 cents, reflecting a 78.6% increase from 14 cents in the same quarter last year [1][6]. - The consensus revenue estimate for the fourth quarter is $6.36 billion, indicating a 7.2% growth from the prior year's figure [1][6]. Earnings Surprise History - CCL has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 169.8% [3][4]. Revenue and Cost Trends - Passenger ticket revenues are projected to rise 5.2% year-over-year to $4.05 billion, while onboard and other revenues are expected to increase by 6.1% to $2.21 billion [9]. - Total operating expenses are anticipated to rise 5.3% year-over-year to $5.7 billion, influenced by higher variable compensation and ongoing investments in destinations and ship maintenance [11][10]. Stock Performance and Valuation - CCL shares have increased by 19.4% over the past six months, outperforming the Zacks Leisure and Recreation Services industry growth of 7.6% and the S&P 500's rise of 16.5% [12]. - The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.68, below the industry average of 17.15, indicating a potential undervaluation [14]. Strategic Positioning - The company is benefiting from strong booking momentum, high pricing, and disciplined yield execution, with record forward bookings and elevated customer deposits [16]. - Strategic investments in destination development and fleet upgrades are expected to enhance revenue generation and shareholder value over time [16]. Conclusion on Investment - While the fundamentals appear supportive, near-term visibility is limited due to ongoing cost pressures and elevated interest expenses, suggesting potential volatility around upcoming results [20][21]. - A cautious approach is recommended, with existing investors maintaining exposure due to improving fundamentals, while new investors may consider waiting for clearer signals on cost management [22].

The cruising giant reports quarterly results this week. It didn't go very well last time.The past few weeks have been a bon voyage for investors in cruise line stocks. Carnival Corp. (CCL 0.56%) -- the country's largest player by revenue -- has seen its shares coast 10% higher over the past month. This would be cause for a party on the pool deck, but comparison is the thief of joy sometimes.Rival Royal Caribbean -- the country's largest player by market cap -- is up a more robust 13% in the same time. Even ...

Group 1: Industry Outlook - The Caribbean market is becoming oversaturated, and the potential end of the Ukraine war positions Europe as a key battleground for the cruise industry by 2026, benefiting operators like Carnival (CCL.US) and Viking (VIK.US) over competitors [1] - Jefferies' David Katz expresses optimism for the cruise industry, noting that operators with significant European market presence will likely outperform those focused on the Caribbean [1] Group 2: Carnival Corporation - Carnival remains a top pick in the leisure and entertainment sector due to improving business quality and minimal capacity growth, with a "buy" rating reaffirmed by Katz [2] - The company is expected to benefit from disciplined capacity growth and targeted marketing efforts, focusing on single-ship pricing growth [2] - Carnival's European brands, including historical ties to St. Petersburg, are anticipated to gain from the resolution of the Ukraine conflict [2] Group 3: Viking Holdings - Viking is expected to benefit from its Europe-centric routes and high-income consumer targeting, with a rating upgrade from "neutral" to "buy" and a target price increase of 33% to $80 [2] - Projected net income growth for Viking is 5% in FY2026 and 4% in FY2027, with double-digit growth anticipated in adjusted EBITDA for FY2026-2027 [2] Group 4: Norwegian Cruise Line - Norwegian Cruise Line's decision to redeploy 10% of its European fleet to the Caribbean is seen as ill-timed, potentially disrupting normal bookings and affecting revenue due to short-term discounting [3] - The shift to target "high-end family" customers may exert additional pressure on pricing, despite commendable cost control efforts [3] - Katz downgraded Norwegian's rating from "buy" to "neutral" and reduced the target price by 23% to $20 [4] Group 5: Royal Caribbean - Royal Caribbean maintains a "neutral" rating, recognized for its strong management and business model, although pricing pressures are anticipated in 2026 [4] - The company is expected to see stronger growth in 2027 as more land assets come online, with a continued focus on technology and innovation [4] - Stock prices for Royal Caribbean, Carnival, Viking, and Norwegian all rose approximately 3%, with Royal Caribbean slightly outperforming [4]