Core Insights - Carnival Corporation & plc (CCL) reported record-breaking booking volumes in Q3 of fiscal 2025, indicating strong consumer demand for cruising and improved pricing power [1][10] - Nearly half of the 2026 sailings are already booked, significantly higher than the previous year, with elevated pricing levels marking the highest forward-booking position in the company's history [1][10] Booking Performance - Both North American and European brands achieved record-high pricing, reflecting strong demand across Carnival's portfolio [2] - Customer deposits reached a record $7.1 billion in Q3, up over $300 million from the prior year, driven by higher ticket pricing and pre-cruise onboard revenue sales [4] - Booking volumes exceeded expectations, allowing the company to raise full-year guidance for the third time in 2025 [5] New Destination Impact - The opening of Celebration Key, Carnival's new Bahamas destination, has contributed to booking strength, with itineraries commanding a premium on ticket pricing [6] - The company expects 2.8 million guests to visit Celebration Key in 2026, enhancing pricing opportunities and forward visibility [7] Financial Outlook - Carnival enters 2026 with record forward bookings, accelerating pricing, and constrained capacity growth, marking the strongest early reservation pace on record [8] - The company is positioned for continued margin expansion and solid free cash flow generation, supported by sustained onboard spending and balance sheet deleveraging [9] Earnings Estimates - The Zacks Consensus Estimate for Carnival's fiscal 2026 EPS has been revised upward from $2.28 to $2.35 over the past 60 days [11] Stock Performance - CCL stock has gained 46.4% in the past six months, outperforming the Zacks Leisure and Recreation Services industry and the S&P 500 Index [16] - CCL is currently trading at a forward 12-month P/E multiple of 12.43, below the industry average of 17.80, indicating an attractive investment opportunity [19] Investment Consideration - The alignment of strong fundamentals, disciplined execution, and a discounted valuation suggests that CCL stock presents a timely investment opportunity [24]

Key Points Carnival's strong financial results in recent years have lifted its share price well ahead of the overall market. The company posted record revenue in Q3, with record customer deposits. Management is focused on improving the company’s balance sheet. 10 stocks we like better than Carnival Corp. › It wasn't long ago that Carnival (NYSE: CCL) investors had every reason to be pessimistic. The company was trying to navigate the effects of the COVID-19 pandemic, which halted its operations. D ...

Core Viewpoint - Carnival has made a significant recovery post-pandemic, showing strong demand and record operating profits, but recent stock price declines raise questions about future performance [1][2]. Company Overview - Carnival is the largest cruise operator globally, with a fleet of 90 ships across various brands, including Princess and Holland [2]. - The company is experiencing demand that exceeds its current capacity, prompting orders for additional ships to accommodate travelers [2]. Demand Generation - Carnival is actively enhancing demand through new features and exclusive destinations, such as the recently opened Celebration Key in the Caribbean [3]. - Management anticipates high visitor traffic at Celebration Key, with two ships in port 85% of the time [3]. Capacity Expansion - The company is strategically relocating ships to high-demand areas and has plans to increase capacity for the 2027 and 2028 sailing seasons [4]. - New booking options have been introduced in South Florida and Texas, along with new home ports in Norfolk, Virginia, and Baltimore, Maryland [4]. Financial Performance - Carnival reported its highest-ever quarterly adjusted net income of $2 billion for the fiscal third quarter ending August 31, exceeding guidance across all metrics [6]. - The company has raised its full-year guidance multiple times this year, indicating strong financial momentum [6]. Stock Market Reaction - Despite strong earnings, Carnival's stock fell 7% following the report, attributed to concerns over its remaining $26.5 billion debt and a modest 4% year-over-year revenue increase [7][8]. - The market reaction may also be linked to rising crude oil prices and plans to convert some debt into stock, which could dilute existing shares [8]. Analyst Sentiment - Wall Street analysts are optimistic, with 73% recommending Carnival as a buy, projecting an average price target increase of 27% over the next 12 to 18 months [9]. - Analysts suggest that long-term investors may find this a favorable buying opportunity despite potential short-term volatility [10][11].

Core Insights - Sun Princess has been recognized as the 1 Mega Cruise Ship in the 2025 Condé Nast Traveler Readers' Choice Awards, marking its second consecutive year of receiving this honor, highlighting its exceptional service and innovative design [1][2] - The ship, launched in 2024, is the first of the Sphere-Class vessels, featuring a capacity of 4,300 guests and a weight of 177,882 tons, setting a new standard in the cruise industry [1][3] Company Highlights - Gus Antorcha, President of Princess Cruises, emphasized the award as a testament to the ship's next-generation design and the dedication of the crew, which enhances guest experiences [2] - The Readers' Choice Awards are a respected recognition program in the travel industry, with hundreds of thousands of votes cast annually by readers [2] Ship Features - Sun Princess offers unique features such as The Dome, a multi-level entertainment space, and Spellbound by Magic Castle, an immersive speakeasy experience [3] - The ship includes over 1,500 balcony staterooms and suites designed for comfort, featuring the exclusive Sanctuary Collection, which provides a private escape at sea [4] Entertainment and Dining - Standout venues on the ship include The Princess Arena, the most technologically advanced theater, and The Piazza, known for its dramatic architecture and ocean views [5] - Guests can enjoy 30 dining and bar venues, featuring high-end ingredients and a selection of premium liquors, including the Love Line Premium Liquors Collection [3][4] Future Developments - Princess Cruises plans to expand its fleet with the introduction of Star Princess, which recently set sail on its maiden voyage, further enhancing the guest experience [5][9]

Core Viewpoint - Carnival Corporation & plc's shares have declined over 11% since the release of FQ3 2025 earnings on September 29th, which is considered unjustified given the company's reported performance [1]. Company Performance - The company reported earnings that do not warrant the significant drop in stock price, indicating potential undervaluation [1]. Market Trends - The downward trend in Carnival's stock may present an investment opportunity for those looking at undervalued companies in the market [1].

Core Viewpoint - The article highlights two undervalued growth stocks, Carnival and Roku, which are positioned for attractive returns as they trade significantly below their previous peaks while experiencing growing demand for their services. Group 1: Carnival - Carnival stock has risen 62% over the last year but remains 60% below its all-time high before the pandemic [2] - The company is a global leader in the cruise industry, with brands including Costa Cruises, Aida, and Princess Cruises, benefiting from strong demand that is driving ticket prices and record revenues [3] - Carnival generated $4.3 billion in operating profit on $26 billion of revenue over the last year, with a recent quarterly record in revenue and profitability, yet trades at just 14 times this year's consensus earnings estimate [4] - The company has reported its 10th consecutive quarter of record revenue and is investing in exclusive destinations to drive further demand, such as Celebration Key and Half Moon Cay [5][6] - Analysts expect Carnival's earnings to grow at an annualized rate of 21%, with nearly half of 2026 sailings already booked, indicating strong demand visibility [6] Group 2: Roku - Roku is well positioned to capture advertising spending shifting from traditional TV to digital streaming, with over 150 million viewers starting their daily TV watching through its platform [7] - The connected TV market is transforming, with nearly 44% of total TV watching time in the U.S. occurring on streaming platforms, and ad spending in this market expected to grow from $33 billion this year to $47 billion by 2028 [8] - Roku's platform revenue, which includes ads and subscription revenue sharing, grew 18% year over year last quarter, indicating a positive trend in ad spending [9] - The company competes in a competitive connected TV market but offers a budget-friendly alternative and free ad-supported content through The Roku Channel [10] - Roku's stock is up 34% year to date, with analysts expecting free cash flow to grow at an annualized rate of 42% to reach $1.2 billion by 2029, suggesting potential for market-beating returns [11][12]

Core Insights - Princess Cruises has launched its newest Sphere-Class ship, Star Princess, which is embarking on its inaugural voyage from Barcelona, marking a significant addition to the fleet [1][2] Ship Features - Star Princess is a 177,800-ton vessel with a capacity for 4,300 guests, featuring 30 dining and bar venues, luxurious accommodations, and elevated entertainment options [2][5] - The ship includes over 1,500 balcony staterooms, providing guests with panoramic views and exclusive amenities [5][8] Inaugural Voyage Details - The inaugural 11-day Western Mediterranean voyage runs from October 4 to October 15, 2025, with stops in Marseille, Rome, Naples, Sicily, Cartagena, and Gibraltar before returning to Barcelona [6] - Following the Mediterranean voyage, Star Princess will sail a transatlantic route before debuting in Fort Lauderdale for its Caribbean season and official naming ceremony on November 6, 2025 [6] Entertainment Offerings - New entertainment highlights include the return of the acclaimed show "Spellbound," original theatrical productions "Meridian" and "Illuminate," and a vibrant array of deck parties and themed events [7][4] - The ship features a new Candlelight Concert Series in the glass-enclosed Dome, enhancing the onboard entertainment experience [7] Culinary Experience - Guests can choose from 30 dining venues, including an expanded O'Malley's Irish Pub and a specialty dining space by artist Romero Britto, offering a diverse culinary experience [12] - The Love Line Premium Liquor Collection features curated wines and spirits from renowned celebrities, enhancing the onboard beverage offerings [12] Wellness and Recreation - Star Princess offers wellness options such as a two-story Lotus Spa, a fitness center, and a new sports court for activities like pickleball and basketball [12]

Key Points The giant cruise operator continues to see strong demand trends for its trips. Interest rates are coming down, which should create a tailwind for the company. Despite strong gains from their lows, the shares continue to look cheap. 10 stocks we like better than Carnival Corp. › Shares of Carnival (NYSE: CCL), the world's largest cruise line, were pulling back on Monday after a strong earnings report. Carnival delivered another quarter of record results during its third quarter, the sea ...

Core Insights - Carnival Corp. has reported its 10th consecutive quarter of record revenue, indicating a strong recovery in the cruise industry post-pandemic [1][3] - Despite strong financial results, the stock price declined following the report, although it remains up approximately 15% year-to-date [1] Financial Performance - For the fiscal third quarter, Carnival's revenue increased by 3% to a record $8.15 billion, with ticket revenue rising by 4% to $5.43 billion and onboard revenue increasing by 2% [3] - Adjusted net income rose by 10% to $2 billion, while adjusted EBITDA increased by 7% to $3 billion, and adjusted earnings per share climbed 13% to $1.43 [6] - The company generated about $4.7 billion in operating cash flow and $2.6 billion in free cash flow, marking a significant improvement from the previous year [7] Capacity and Occupancy - Available lower berth days (ALBDs) decreased by 2% to 24.6 million, while occupancy remained high at 112% [4] - Net yields increased by 5% to $249.11, indicating improved profitability per cabin [5] Future Outlook - Carnival expects fiscal Q4 adjusted net income to surge by 60% to $300 million and net yields to rise by 6.4% [8] - The company has raised its full-year guidance for net yield growth, adjusted EBITDA, and adjusted EPS across multiple quarters [10] Debt Management - Carnival is projected to reduce its leverage to 3.6 times net debt/adjusted EBITDA by year-end 2025, down from 6.7 times at the end of fiscal 2023 [8][12] - The company is taking a disciplined approach to adding new ships while benefiting from strong occupancy and high prices [13] Valuation - Carnival trades at a forward enterprise value (EV)-to-EBITDA multiple of approximately 9.5, which is in line with competitors and offers a reasonable valuation [14]

Core Insights - The owner of Carnival Cruise Line, Princess Cruises, and Holland America is planning a new marketing campaign ahead of the industry's competitive "wave season" [1] Group 1 - The campaign aims to attract more customers during a peak booking period for the cruise industry [1]