Group 1: Stock Performance - Carnival (CCL) shares increased by 8.5% to close at $31.15, with trading volume significantly higher than usual, contrasting with a 6% loss over the past four weeks [1] - The stock's recent performance was influenced by positive results from Royal Caribbean, which reported strong fourth-quarter 2025 results and an optimistic outlook for 2026, indicating industry-wide momentum [2] Group 2: Earnings Expectations - Carnival is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year increase of 38.5%, with revenues projected at $6.1 billion, a 5% rise from the previous year [3] - However, the consensus EPS estimate for Carnival has been revised 0.6% lower in the last 30 days, which typically does not correlate with price appreciation [4] Group 3: Industry Context - Carnival is part of the Zacks Leisure and Recreation Services industry, where another company, Xponential Fitness (XPOF), experienced a 0.6% decline in its last trading session and a -5.5% return over the past month [5] - Xponential Fitness has an unchanged EPS estimate of -$0.03 for its upcoming report, representing an 83.3% improvement from the previous year, but currently holds a Zacks Rank of 4 (Sell) [6]

Company Performance - Carnival Corporation & PLC (NYSE:CUK) experienced a share price increase of 8.60% on Thursday, closing at $30.94, driven by positive earnings from a competitor, Royal Caribbean Group, which may indicate overall industry performance [1] - The company announced a dividend distribution of 15 cents per share to common shareholders, payable on February 27, 2026, reflecting confidence in future performance [2][3] Industry Context - Royal Caribbean Group reported a 48% increase in attributable net income, reaching $4.27 billion for the full year 2025, with revenues of $17.9 billion, an 8.5% year-on-year growth, positively impacting the cruise industry [4] Corporate Strategy - Carnival Corporation & PLC plans to unify its two companies into one, with Carnival Corp. becoming the main entity and Carnival PLC as a wholly-owned subsidiary, aiming for a single stock for all shareholders [5][6] - The company seeks shareholder approval for this unification plan on April 17, 2026 [6]

Core Insights - Holland America Line has announced its 2027-2028 Legendary Voyages season, featuring immersive cruises that include the first Caribbean-based Legendary Voyage and unique itineraries such as the 28-Day Pan Am 100 Years Legendary Voyage and the 28-Day Solar Eclipse & Cosmic Port Explorer [1][3] Itinerary Highlights - The 47-Day Ultimate Mediterranean & Atlantic Passage will return, sailing roundtrip from New York and visiting 21 ports across 12 countries, providing guests with significant time ashore in culturally rich locations [2][4] - The 28-Day Pan Am 100th Anniversary Legendary Voyage will retrace historic Clipper routes across the Caribbean, Mexico, and Latin America, visiting 18 destinations and including themed programming that honors the golden age of travel [7] - The 28-Day Legendary Solar Eclipse & Cosmic Port Explorer will offer a rare opportunity to view a solar eclipse at sea while visiting 13 ports across Europe and North Africa, including overnight stays in key cities [7] Onboard Experience - Legendary Voyages will feature an elevated onboard experience with curated programming that enhances the cultural connection to the destinations visited, including themed parties, local performances, and creative workshops [8][12] - The cruises will also include premium touches such as commemorative gifts, a Captain's Gala Dinner, and religious services for guests wishing to worship at sea [12] Geographic Coverage - The collection of Legendary Voyages spans multiple regions including Alaska, Europe, the South Pacific, the Caribbean, South America, and the Amazon, with itineraries ranging from 28 to 47 days [3][13]

Core Viewpoint - The cruise industry is witnessing a recovery, with Carnival Corporation & plc (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH) presenting different investment opportunities as travel demand normalizes [2][3]. Carnival Corporation (CCL) - CCL's investment appeal is based on significant improvements in operating performance and earnings potential, with 2025 expected to see record highs in revenues, yields, operating income, and EBITDA, alongside a net income exceeding $3 billion, a 60% increase year-over-year [4]. - Demand resilience is evident, with CCL entering 2026 with about two-thirds of its capacity booked at historically high prices, and record booking volumes for 2026 and 2027 [5][6]. - CCL has managed to keep unit cost growth below expectations despite inflation and other costs, with expectations for normalized cruise costs to rise at a manageable pace, leading to another year of double-digit earnings growth and EBITDA exceeding $7.6 billion [7]. - The company has significantly improved its balance sheet, reducing debt by over $10 billion and achieving an investment-grade leverage ratio of approximately 3.4x, with plans to reduce it below 3x by the end of 2026 [8]. Norwegian Cruise Line Holdings (NCLH) - NCLH is entering 2026 with strong operational momentum, reporting record revenues, EBITDA, and bookings, with occupancy exceeding 106% and bookings up over 20% year-over-year [11]. - The company is focusing on shorter Caribbean itineraries and increasing family participation, which is enhancing fleet utilization and profitability, although this may dilute headline pricing [12]. - NCLH is prioritizing deleveraging, targeting a leverage ratio in the mid-4x range by 2026, while also benefiting from strong demand in its luxury brands [13]. Financial Estimates and Performance - The Zacks Consensus Estimate for CCL indicates a 4.3% increase in sales and a 12% increase in EPS for fiscal 2026, with upward revisions in earnings estimates [15]. - In contrast, NCLH's estimates imply a 9.8% increase in sales and a 23.6% increase in EPS for 2026, but recent earnings estimates have been revised downward [16]. - CCL's shares have gained 3.2% over the past year, while NCLH's stock has declined by 26.9% [18]. Valuation - CCL is trading at a forward P/E ratio of 11.15X, below its median of 12.06X, while NCLH's forward earnings multiple is at 7.87X, above its median of 7.39X [22]. Conclusion - The comparison favors CCL due to its recovery driven by improved earnings quality rather than just volume, with strong pricing and cost control leading to rising returns and financial flexibility [25]. - NCLH's growth is more execution-sensitive, relying on high occupancy and itinerary shifts, making CCL a more attractive option for new capital, while NCLH is better suited as a hold [26].

Company Overview - Carnival Corporation & plc operates as the largest global cruise company with a combined passenger capacity of 263,300 as of December 31, 2023, representing approximately 37.5% of the global cruise industry capacity of 701,110[33]. - Carnival Corporation's North America segment accounts for 64% of its total passenger capacity, with Carnival Cruise Line being the largest brand at 35%[35]. - In 2025, Carnival Corporation & plc carried a total of 13,627 thousand passengers, an increase from 13,509 thousand in 2024 and 12,460 thousand in 2023[53]. - The United States and Canada remained the largest source market, contributing 8,092 thousand passengers in 2025, up from 7,938 thousand in 2024[53]. - Carnival Corporation's cruise brands cater to diverse consumer segments, including contemporary, premium, and luxury experiences, allowing for a broad market penetration[32]. Corporate Structure and Governance - The company plans to unify its corporate structure under Carnival Corporation, with a proposed shift of legal incorporation from Panama to Bermuda, expected to be completed in Q2 2026, subject to shareholder and regulatory approvals[22][23]. - Carnival Corporation announced a proposed unification of its dual-listed company (DLC) structure under a single entity, Carnival Corporation, with a migration from Panama to Bermuda, which is expected to provide various benefits, although the realization of these benefits is uncertain[174]. - The company plans to unify its dual listed structure under a single corporate entity to streamline governance and increase liquidity[219]. Financial Performance and Strategy - Carnival Corporation aims to enhance its financial position by reducing debt and achieving double-digit return on invested capital (ROIC), while reinstating dividends and maintaining disciplined cost control[30]. - The company did not pay or declare dividends for the year ended November 30, 2025, but reinstated a quarterly dividend of $0.15 per share, with a record date of February 13, 2026[198]. - Carnival Corporation's common stock price performance showed a value of $129 at the end of 2025, compared to $100 at the beginning of the period, indicating a recovery from previous lows[207]. - In 2025, Carnival plc completed a $19 billion refinancing plan, reducing total debt by over $10 billion since January 2023[214]. - The company reinstated its dividend, reflecting confidence in cash generation and balance sheet improvements[214]. Operational Developments - The company welcomed 7.4 million guests to its port destinations and exclusive islands in 2025, an increase from 6.5 million in 2024, indicating strong demand for its cruise offerings[48]. - Carnival Corporation has seven cruise ships under contract for construction, with expected deliveries ranging from 2027 to 2033, including new builds for Carnival Cruise Line and AIDA[38][39]. - The company introduced the Paradise Collection in 2025, featuring Celebration Key, a new exclusive cruise port destination, which will enhance its operational capacity with a pier extension expected to accommodate four ships simultaneously by 2026[50]. - Carnival plc opened the exclusive destination Celebration Key in July 2025, hosting over one million guests since its launch[217]. - Carnival plc is expanding its Paradise Collection properties, including RelaxAway and Isla Tropicale, in 2026[217]. Sustainability and Environmental Commitment - The company is committed to sustainability, focusing on reducing fuel consumption and carbon footprint while advancing a circular economy[29]. - The company aspires to achieve net zero emissions from ship operations by 2050, contingent on the development of scalable energy sources and technologies[144]. - In 2021, the company established sustainability goals for 2030, focusing on areas such as Climate Action, Circular Economy, and Biodiversity and Conservation[143]. - Carnival Corporation achieved a 20% reduction in greenhouse gas emissions intensity ahead of its 2030 goal, compared to the 2019 baseline[218]. - Carnival plc's "Less Left Over" strategy reduced food waste by over 47%, moving closer to its 50% target for 2030[218]. Marketing and Customer Engagement - The company increased its marketing and advertising programs in 2025, aiming to drive greater demand across its cruise lines and port destinations[62]. - The company has invested in new marketing technologies to enhance guest engagement and improve the effectiveness of its communications[62]. - Carnival Corporation is enhancing commercial strategies by leveraging AI to improve marketing effectiveness and drive efficiency gains[216]. Workforce and Labor Relations - The company is focused on becoming the employer of choice in the travel and leisure sector, with a workforce of over 160,000 individuals from approximately 150 countries[27]. - In 2025, Carnival Corporation & plc had an average of 101,000 employees onboard its ships, with an additional 16,000 shoreside employees[70]. - Approximately 48% of shipboard employees and 21% of shoreside employees were represented by collective bargaining agreements in 2025[71]. - The International Labor Organization oversees labor standards that include minimum age, medical certificates, and training for seafarers[136]. Regulatory and Compliance Issues - The company is committed to complying with various international, national, and local maritime regulations, including those related to health, environmental, safety, and security matters[102]. - The company is subject to various governmental regulations, including those addressing antitrust, anti-money laundering, and data privacy[141]. - The state of California has environmental requirements for water discharges and air emissions that are significantly more stringent than federal regulations[128]. - The state of Alaska requires permitting for certain discharges from cruise ships, with stricter compliance standards than federal law[128]. Risks and Challenges - Adverse weather conditions and natural disasters may significantly impact the company's operations and profitability, potentially leading to itinerary changes or cruise cancellations[153]. - The company faces risks related to its sustainability objectives, which may not be achieved due to factors such as the availability of low-emission energy sources and evolving regulatory requirements[154]. - Cybersecurity incidents and data privacy breaches could disrupt operations and lead to financial losses, regulatory penalties, and reputational damage[155]. - The company's ability to service its debt is contingent on future operating performance and cash generation, which may be affected by various uncontrollable factors[156]. - Increases in fuel costs and volatility in fuel supply could adversely affect operational costs and profitability, impacting guest demand for cruises[158]. - The company relies on suppliers for critical operations, and disruptions in the supply chain could lead to increased costs and operational challenges[161]. - Fluctuations in foreign currency exchange rates may negatively impact financial results, particularly as revenues and expenses are incurred in multiple currencies[162]. - Investments in port destinations and exclusive islands expose the company to risks such as weather events and local political developments[163]. - Overcapacity in the cruise industry may lead to reduced pricing power and profitability, as competition increases for cruise sales and destination options[164]. - Compliance with evolving laws and regulations related to health, environment, and sustainability may incur significant costs and impact operational flexibility[167]. Cybersecurity Measures - The company has implemented a comprehensive cybersecurity risk management program, leveraging frameworks such as NIST and ISO/IEC 27001, to proactively identify and mitigate potential threats[179]. - Carnival Corporation has not experienced any material cybersecurity incidents in the last three fiscal years, and expenses related to cybersecurity incidents were not material[184]. - The company maintains an incident response plan that is regularly updated and tested through crisis simulation exercises to address new cybersecurity threats[180]. - The Global Chief Information Security Officer (CISO) leads cybersecurity efforts and oversees risk management across information technology operations, with over 20 years of experience in the field[185]. - Carnival Corporation's Cybersecurity Advisory Council meets quarterly to oversee cybersecurity strategic direction and risk management[186].

With a market cap of $33.3 billion, Carnival Corporation & plc (CCL) is a global cruise company providing leisure travel services across North America, Australia, Europe, and other international markets. It operates multiple cruise brands and travel-related assets, offering cruises and vacation experiences through various sales channels worldwide. Shares of the Miami, Florida-based company have lagged behind the broader market over the past 52 weeks. CCL stock has gained 12.8% over this time frame, while ...

Core Insights - Princess Cruises has introduced two new specialty dining venues, Makoto Ocean and Crown Grill, on the Diamond Princess, enhancing the onboard culinary experience for guests [1][2][3] Group 1: New Dining Venues - Makoto Ocean features Edomae-style sushi crafted by Chef Makoto Okuwa, offering signature dishes like truffle salmon and snow crab temaki, along with Japanese-inspired cocktails [2] - Crown Grill, located in the former Savoy Dining Room, is known for its premium aged beef and seafood, providing an elegant dining atmosphere [3] - Both dining venues are priced at $55 per person, with complimentary access for guests booking the Princess Premier package [3] Group 2: Expansion and Future Plans - Diamond Princess is currently sailing in Asia, with itineraries that include destinations such as Thailand, Malaysia, and Vietnam, before returning to Japan [6] - In 2027, Princess Cruises will launch its most extensive Japan season, featuring 78 departures across 50 unique itineraries, marking a significant milestone for the brand in Asia [7] - The 2027 Japan season will include voyages ranging from seven to 28 days, showcasing the company's commitment to expanding its presence in the region [7] Group 3: Company Background - Diamond Princess and Sapphire Princess are sister ships built in Japan, highlighting Princess Cruises' long-standing legacy and connection to the Asian market [5] - Princess Cruises is recognized as a leading cruise brand, offering a variety of experiences and destinations, including the Caribbean, Alaska, and Asia [9][10]

Core Insights - The cruise sector is entering 2026 with record bookings, but the stocks of the "Big 3" — Carnival, Norwegian, and Royal Caribbean — are facing challenges as the market shifts focus from revenue to margins and regulatory issues [2] Group 1: Company Performance - Royal Caribbean (RCL) has significantly outperformed its peers with a strategy that accommodates various budget levels, targeting 20% earnings per share (EPS) growth [3] - Carnival (CCL) achieved record revenue in 2025, but is facing rising unit costs (over 3%) and increased global tax exposure in 2026, leading to a perception of it being a "catch-a-falling-knife" stock [4] - Norwegian Cruise Line (NCLH) has lagged behind, only outperforming a small portion of stocks in the S&P 500 Index over the past year [5] Group 2: Market Position and Valuation - In terms of market capitalization, RCL is the largest, more than double its peers, despite CCL having higher annual sales [6] - NCLH is the smallest and cheapest among the three, with a trailing price-to-earnings (P/E) ratio of 11x, selling at 1x sales and half its growth [7] Group 3: Technical Analysis and Investor Sentiment - All three cruise stocks exhibit high volatility, being twice as rocky as the S&P 500 or more [6] - The technical outlook for these stocks is not favorable, leading to a sentiment that they are treated similarly by Wall Street [8] - Despite near-term challenges, there is a belief that NCLH may have long-term growth potential based on chart analysis [9]

Group 1: G-III Apparel Group Ltd - G-III Apparel Group Ltd has shown strong performance in the apparel sector, with significant revenue growth reported in the latest quarter [1] - The company is expanding its brand portfolio, which is expected to enhance market presence and drive future sales [1] Group 2: ePlus Inc - ePlus Inc has experienced an increase in demand for its technology solutions, leading to improved financial results [1] - The company is focusing on strategic partnerships to enhance its service offerings and market reach [1] Group 3: Carnival Corporation - Carnival Corporation is recovering from previous operational challenges, with a notable increase in passenger bookings and revenue [1] - The cruise line is implementing new health and safety protocols to attract customers and ensure a safe travel experience [1] Group 4: Tutor Perini Corporation - Tutor Perini Corporation has secured several new contracts, contributing to a positive outlook for future revenue growth [1] - The company is investing in technology to improve project efficiency and reduce costs [1]

Company Overview - Carnival Corporation & plc (NYSE: CCL) is a Florida-based provider of leisure travel services, founded in 1972, operating through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other [4] Investment Ratings and Price Targets - TD Cowen raised the price target on Carnival Corporation to $38 from $35, maintaining a Buy rating, indicating an upside potential of 35.42% [1] - UBS also reaffirmed its Buy rating and $38 price target on Carnival Corporation, anticipating FY26 yield growth to be 0.3% higher than the company's projection of 2.5% [3] Earnings Outlook - Despite challenges in the Caribbean affecting earnings for Royal and Norwegian, underlying demand for cruises remains strong, with positive capacity dynamics expected through FY29 [2] - UBS lowered its reported net yield forecast for Carnival to 4% YoY, down from 4.4%, due to a more modest foreign exchange tailwind, while maintaining the FY28 net yield estimate at 2.5% YoY growth [3]