Key Points The cruise industry is alive and well. After years of turbulence, management sees calmer seas ahead. 10 stocks we like better than Carnival Corp. › Shares of Carnival (NYSE: CCL)(NYSE: CUK) climbed on Friday after the cruise line announced record earnings and issued an upbeat forecast for the year ahead. Image source: Carnival. Carnival's profits are soaring Carnival's fourth-quarter revenue rose 7% year over year to $6.3 billion. The company's net yields -- a key indicator of pricing ...

Core Insights - Carnival Corp. reported record profits for the full year 2025, reinstated its dividend, and provided a positive outlook for 2026, which has led to a significant increase in its stock price [3][6]. Company Performance - Carnival's stock closed at $31.12, up 9.81%, with a market capitalization of $37 billion. The trading volume reached 84 million shares, approximately 250% above its three-month average [2]. - The company has grown 690% since its IPO in 1987, indicating strong long-term performance [2]. Financial Highlights - Carnival's record full-year revenue and adjusted earnings per share were reported, although sales slightly missed Wall Street's estimates. However, the stock surged due to a positive outlook for the next two years, driven by record bookings for 2026 and 2027 [6]. - The reinstated quarterly dividend is set at $0.15 per share, resulting in a 1.9% dividend yield at the current share price. This follows a $10 billion debt reduction since 2023 [7]. - The company is guiding for an adjusted EBITDA of $7.63 billion in 2026, trading at a valuation of 8.3 times next year's EBITDA guidance, suggesting it could be an attractive investment opportunity [7]. Industry Context - Other cruise lines, such as Royal Caribbean and Norwegian, also saw stock price increases, reflecting overall sector strength and positive investor sentiment following Norwegian's $1 billion EBITDA milestone [5].

Core Insights - Carnival Corporation & plc reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.34 compared to estimates of $0.25, leading to a more than 9% increase in shares intra-day [1] - The company announced the reinstatement of its dividend, which contributed to the positive market reaction [1] - For the full fiscal year, Carnival reported adjusted net income of $3.1 billion, a year-over-year increase of over 60%, driven by strong demand and effective cost management [2] Financial Performance - Revenue for the fourth quarter totaled $6.3 billion, slightly below the consensus estimate of $6.37 billion, but still marked a record performance for the company [1] - Fourth-quarter net yields in constant currency rose by 5.4% compared to 2024, exceeding the company's September guidance by 1.1 percentage points [2] Future Outlook - Carnival projected adjusted net income growth of approximately 12% in fiscal 2026 relative to record 2025 levels [3] - Net yields in constant currency are expected to increase by about 2.5%, supported by favorable demand trends and pricing [3]

Core Insights - Carnival Corp.'s latest ad campaign, "Find Your Fun Again," resonates with travelers, leading to a significant rise in share prices, which increased by over 8% following strong quarterly results and optimistic fiscal 2026 guidance [1][6] Financial Performance - For fiscal 2025, Carnival reported adjusted earnings of $0.34 per share, surpassing analyst expectations of $0.25, with revenue reaching a record $6.33 billion, slightly below estimates [3][6] - The company anticipates adjusted net income of $3.5 billion for fiscal 2026, exceeding both the record levels of 2025 and the Visible Alpha consensus of $3.37 billion [4] Dividend and Shareholder Value - Carnival's board has reinstated a quarterly dividend of $0.15 per share, reflecting confidence in future performance and a commitment to delivering shareholder value [5][6] Market Impact - Following the positive earnings report, Carnival's shares surged, making it one of the top gainers on the S&P 500, with Norwegian Cruise Line and Royal Caribbean also experiencing share price increases of 6% and 3%, respectively [6] Industry Outlook - The strong results from Carnival indicate robust cruise demand despite rising travel costs in other sectors, suggesting a positive trend for the cruise industry as a whole [3]

Core Insights - Carnival Corporation & plc (CCL) reported strong fourth-quarter fiscal 2025 results, with adjusted earnings exceeding estimates while revenues fell slightly short [1][4][9] Financial Performance - Adjusted earnings per share (EPS) for Q4 was 34 cents, surpassing the Zacks Consensus Estimate of 25 cents, and up from 14 cents in the same quarter last year [4][9] - Revenues for the quarter reached $6.33 billion, a 6.6% increase year-over-year, but below the consensus estimate of $6.36 billion [4][9] - Adjusted net income rose over 60% to $454 million compared to $186 million in the prior-year quarter [6][9] - Adjusted EBITDA for the quarter was $1.48 billion, up from $1.22 billion year-over-year [6] Operational Highlights - Passenger ticket revenues increased to $4.05 billion from $3.85 billion in the prior-year quarter, aligning with estimates [5] - Onboard and other revenues grew to $2.27 billion from $2.08 billion year-over-year, also exceeding estimates [5] Balance Sheet and Liquidity - As of November 30, 2025, cash and cash equivalents stood at $1.9 billion, up from $1.2 billion in the prior-year period, with total liquidity of $6.4 billion [7] - Total debt decreased to $26.64 billion from $27.48 billion year-over-year [7] Future Outlook - The company anticipates continued momentum into fiscal 2026, projecting double-digit earnings growth and return on invested capital to exceed 13.5% [3][9] - For Q1 fiscal 2026, adjusted EBITDA is expected to be approximately $1.24 billion, with adjusted net income near $235 million and adjusted EPS of 17 cents [13] - For the full fiscal 2026, adjusted EBITDA is projected at approximately $7.63 billion, with adjusted net income anticipated to be nearly $3.5 billion and adjusted EPS of $2.48 [13] Booking and Demand Trends - Strong booking momentum is evident, with two-thirds of capacity for the upcoming year already secured at higher prices [8][10] - Total customer deposits as of November 30, 2025, were $7.25 billion, up from $6.77 billion in the previous quarter [11]

Financial Performance - The company reported record earnings and record yields [2] - Yields were up over 55% on top of approximately 11% the prior year [2] - Projects a normalized 3% yield increase for 2026 [3] Consumer Behavior & Market Trends - Consumers prioritize spending on significant experiences like vacations with friends and family [5] - The company enters 2026 with the highest book point aligned with last year, at higher prices [6] - Consistent customer bases exist for cruises ranging from short trips to 130-night world cruises [6] - Strong business performance is observed across contemporary, premium, and luxury segments [7] - The cruise industry offers a compelling "price to experience ratio" compared to land-based alternatives [8] - The company is improving its position in the mainstream vacation consideration set [8][9]

Core Insights - The company reported record earnings and yields for 2025, with a yield increase of over 5.5% on top of an 11% increase from the previous year, indicating strong demand for its offerings [2] - For 2026, the company projects a normalized yield increase of 3%, despite consumer sentiment challenges and global volatility [3] Consumer Behavior - Consumers are being selective with their spending, prioritizing experiences such as vacations and time with family and friends [4][5] - The company is experiencing the highest booking levels ever at this time, with bookings at higher prices compared to the previous year [6] - There is a consistent demand across various cruise segments, including contemporary, premium, and luxury, indicating a broad appeal [7] Value Proposition - The company emphasizes the favorable price-to-experience ratio of cruises compared to land-based alternatives, which enhances its attractiveness to consumers [8] - The company is expanding its market reach, becoming a more prominent option for consumers looking to maximize their vacation spending [9]

Carnival Corporation - Carnival Corporation reported adjusted earnings of $0.34 per share, exceeding analysts' expectations of $0.25 per share, with a record revenue of $6.33 billion, slightly below estimates [2] - For fiscal 2026, Carnival anticipates adjusted net income of $3.5 billion, surpassing the record levels of 2025 and the Visible Alpha consensus of $3.37 billion [2] - The company's board reinstated a quarterly dividend of $0.15 per share, reflecting confidence in future performance and commitment to shareholder value [3] Market Reaction - Following the positive quarterly results and optimistic guidance for fiscal 2026, shares of Carnival surged by 8% [1] - Shares of competitors Norwegian Cruise Line Holdings and Royal Caribbean Cruises also saw increases of 4.5% and 2.5%, respectively [3]

Core Insights - Carnival reported revenue of $6.33 billion for the quarter ended November 2025, reflecting a 6.6% increase year-over-year, but a slight miss of 0.49% compared to the Zacks Consensus Estimate of $6.36 billion [1] - Earnings per share (EPS) was $0.34, significantly up from $0.14 in the same quarter last year, resulting in a 36% surprise against the consensus estimate of $0.25 [1] Financial Performance Metrics - Carnival's shares have returned +11.9% over the past month, outperforming the Zacks S&P 500 composite's +2.5% change, with a current Zacks Rank of 3 (Hold) [3] - Available lower berth days (ALBDs) were reported at 24.1 million, slightly below the average estimate of 24.12 million [4] - Occupancy percentage was 102%, slightly lower than the estimated 103.2% [4] - Passenger cruise days (PCDs) totaled 24.6 million, compared to the average estimate of 24.89 million [4] - Fuel cost per metric ton consumed was $573.00, better than the average estimate of $598.13 [4] - Net yields per ALBD were $203.52, close to the average estimate of $203.63 [4] - Fuel consumption was reported at 700.00 Kmt, lower than the average estimate of 721.18 Kmt [4] - Revenues from onboard and other sources reached $2.28 billion, exceeding the estimated $2.22 billion, representing a 9.3% increase year-over-year [4] - Revenues from passenger tickets were $4.05 billion, slightly below the estimated $4.13 billion, with a year-over-year increase of 5.2% [4]

Core Insights - Carnival Corporation & plc is a significant player in the leisure travel industry, operating a large fleet of cruise ships under various brand names, and competes with major cruise lines like Royal Caribbean and Norwegian Cruise Line [1] Price Target Trends - The consensus price target for Carnival's stock has increased from $33.89 to $36.64 over the past year, indicating growing optimism among analysts regarding the company's future prospects [2][6] - Analyst Stuart Gordon from Berenberg Bank has set a more conservative price target of $23, reflecting cautious optimism ahead of the fourth-quarter earnings report [3][6] Upcoming Earnings Report - Carnival is expected to announce its fourth-quarter earnings results soon, which is highly anticipated by investors, with analysts revising their forecasts for higher earnings [3][4] - The upcoming earnings report is seen as a pivotal moment for Carnival and the cruise industry, with strong bookings and favorable pricing contributing to an optimistic outlook, despite ongoing cost pressures [4][6] - Investors are closely monitoring the earnings report, as it could significantly influence the short-term trajectory of cruise stocks [4][5]