Company Performance - Carnival reported third quarter earnings that exceeded estimates, with adjusted EPS at $1.43 and revenue surpassing $8 billion [1] - Despite strong earnings, Carnival's stock is trading lower, reflecting market concerns despite a 23% year-to-date increase and a 64% rise over the past year [4][19] Market Trends - Booking trends for Carnival have strengthened since May, indicating robust demand for cruises, particularly for 2026 [2][6] - The cruise industry is experiencing a positive consumer sentiment, with customers willing to spend on future vacations [8][9] Competitive Landscape - Carnival's stock has underperformed compared to Royal Caribbean but has outperformed Norwegian Cruise Line [7] - Viking is noted as the only cruise line outperforming on the day following Carnival's earnings report [2][29] Financial Considerations - Carnival is facing concerns regarding external factors such as potential shutdowns and tariffs, which may impact future performance [5] - The company has significant debt due to expansion efforts, but it trades at a relatively low PE ratio of about 13 to 14, suggesting potential investment opportunities [10][11] Investment Strategies - Options strategies are being discussed to capitalize on the current lower implied volatility following earnings, with a focus on in-the-money calls for bullish trades [20][22] - A put butterfly strategy is being considered for Royal Caribbean, which has a strong balance sheet and is expected to perform well despite upcoming earnings [26][27]

Core Insights - Carnival Corporation & plc reported record third-quarter 2025 results with net income of $1.9 billion, or $1.33 per diluted share, an increase from $1.7 billion a year earlier [1] - Adjusted net income was $2.0 billion, or $1.43 per diluted share, exceeding analyst expectations of $1.32 [1] - Revenue rose to $8.153 billion, surpassing the consensus estimate of $8.101 billion and increasing from $7.9 billion last year [1] Financial Performance - Adjusted EBITDA reached $3.0 billion [1] - Net yields in constant currency increased by 4.6% year over year, while gross margin yields improved by 6.4% [2] - Cruise costs per available lower berth day (ALBD) rose by 4.6% from 2024, with adjusted cruise costs excluding fuel increasing by 5.5%, which was 1.5 points better than guidance [2] Operational Metrics - Fuel consumption per ALBD fell by 5.2% due to efficiency investments [3] - Passenger cruise days totaled 27.5 million, with occupancy steady at 112% [3] - Customer deposits reached a record $7.1 billion as of August 31 [3] Cash Flow and Liquidity - Cash from operations was $1.38 billion in the quarter and $4.7 billion year-to-date [3] - Capital expenditures totaled $648 million in the quarter [3] - Liquidity stood at $6.26 billion, and total debt was $26.5 billion [4] Debt Management - The company improved its net debt-to-adjusted EBITDA ratio to 3.6x from 4.7x a year earlier [4] - During the quarter, the company refinanced $4.5 billion of debt and prepaid $700 million, while issuing new senior unsecured notes totaling $4.2 billion [6] - Moody's upgraded its credit rating and maintained a positive outlook [6] Future Outlook - Booking trends have strengthened since May, with higher booking volumes than last year, affirming the success of demand generation efforts [5] - Nearly half of 2026 is booked at historical high prices for both North America and Europe segments, building a strong base for next year [5] - Record booking volumes for 2027 were achieved during the third quarter [5]

Joining us now first on CNBC is Carnival Corporation CEO Josh Weinstein. It's it's good to have you back. It sounds like you're another healthy report card on demand for cruising.>> Yeah, you you got it right. We uh we just finished our third quarter. Our our yields were up uh over four and a half% uh nicely over guidance.Uh you know, guests are enjoying what we have to offer. We have eight worldclass brands that are all doing amazing things all over the world. And uh and it shows in the results.It shows in ...

Core Viewpoint - Carnival Corporation (CCL.US) shares fell over 5% after reporting strong earnings, as investors took profits following a peak at $32.49, despite a pre-market increase of 4% [1] Financial Performance - Carnival reported record adjusted net income of $1.9 billion for Q3, with earnings per share (EPS) of $1.43, a 13% increase year-over-year, surpassing the 2019 record [1] - Revenue grew by 3.2% year-over-year to $8.2 billion, marking the tenth consecutive quarter of record revenue, driven by a 3.6% increase in ticket revenue and a 2.5% increase in onboard spending [1] - Customer deposits reached a record high of $7.1 billion [1] Future Outlook - The CEO of Carnival, Josh Weinstein, indicated that booking volumes have significantly outpaced capacity growth, with nearly half of the 2026 itineraries already booked in North America and Europe, and prices at historical highs [1] - The company expects adjusted net income for the full year to increase by approximately 55%, with EPS projected at around $2.14, up from the previous guidance of $2.02 [1]

Core Insights - Carnival Corporation reported strong demand for cruising, with yields up over 4.5% in the third quarter, exceeding guidance [1][2] - The company has increased its guidance for the third time this year, projecting over 5% yields for the year, primarily driven by same-ship sales rather than new ships [2][3] - Booking visibility is strong, with 50% of 2026 bookings already secured and two-thirds booked for the next 12 months [2][3] Financial Performance - Carnival Corporation achieved a 13% return on invested capital (ROIC) for the first time in nearly 20 years, alongside record net income for the quarter [4] - The company has reported record revenues, EBITDA, and operating income on a unit basis, marking the highest performance in 20 years [4] - Booking volumes for Carnival Cruise Line, the largest brand, were 8% higher year-over-year in the third quarter [5] Market Positioning - The strength of the portfolio is evident, particularly in the top two returning brands, Carnival and Aida, which are performing well due to the value offered [6] - Pricing growth is expected to hold into next year, with bookings at higher prices compared to the previous year for both North American and European brands [7] - Carnival Corporation competes not just with other cruise lines but also with the broader vacation market, emphasizing the value proposition of cruising over land-based vacations [9][10]

Core Viewpoint - Carnival Corporation (CCL.US) reported strong Q3 earnings, exceeding Wall Street expectations, but its stock fell over 5% due to profit-taking after reaching an intraday high of $32.49 [1] Financial Performance - Q3 adjusted net profit reached a record $1.9 billion, with earnings per share (EPS) of $1.43, a 13% increase year-over-year, surpassing the 2019 record [1] - Revenue grew by 3.2% year-over-year to $8.2 billion, marking the tenth consecutive quarter of record revenue, driven by a 3.6% increase in ticket sales and a 2.5% increase in onboard spending [1] - Customer deposits reached a record $7.1 billion, indicating strong future demand [1] Guidance and Market Outlook - The company raised its full-year adjusted net profit guidance by approximately 55%, projecting EPS of about $2.14, up from the previous guidance of $2.02 [1] - CEO Josh Weinstein noted that booking volumes have significantly outpaced capacity growth, with nearly half of 2026 itineraries already booked at historically high prices in North America and Europe [1]

Group 1 - Carnival reported $8.15 billion in revenue for the quarter ended August 2025, a year-over-year increase of 3.3% [1] - EPS for the same period was $1.43, compared to $1.27 a year ago, representing an EPS surprise of +8.33% over the consensus estimate of $1.32 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $8.07 billion by +0.99% [1] Group 2 - Key metrics monitored include ALBDs at 24.6 million, occupancy percentage at 112%, and passenger cruise days (PCDs) at 27.5 million [4] - Fuel cost per metric ton consumed was reported at $607.00, higher than the estimated $595.27 [4] - Net yields per ALBD were $249.11, surpassing the average estimate of $247.58 [4] Group 3 - Revenues from onboard and other sources were $2.72 billion, exceeding the average estimate of $2.66 billion, with a year-over-year change of +2.5% [4] - Revenues from passenger tickets reached $5.43 billion, compared to the average estimate of $5.34 billion, reflecting a year-over-year change of +3.7% [4] - Carnival's stock has returned -4% over the past month, while the Zacks S&P 500 composite increased by +2.9% [3]

Core Insights - Carnival Corporation & plc (CCL) reported strong third-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [2][4][9] - The company raised its full-year fiscal 2025 adjusted net income guidance for the third consecutive quarter, driven by stronger net yields and effective cost management [3][12] Financial Performance - Adjusted earnings per share (EPS) for Q3 were $1.43, surpassing the Zacks Consensus Estimate of $1.32 by 8.3%, and increased from $1.27 in the same quarter last year [4] - Total revenues for the quarter reached $8.15 billion, beating the consensus mark of $8.07 billion by 1% and reflecting a 3.3% year-over-year increase [4] - Adjusted net income for the quarter was $1.98 billion, a 13.2% increase from $1.75 billion year-over-year [6] - Adjusted EBITDA totaled $3 billion, up from $2.82 billion in the prior-year quarter [6] Revenue Breakdown - Passenger ticket revenues amounted to $5.43 billion, up from $5.24 billion in the prior-year quarter, exceeding estimates of $5.25 billion [5] - Onboard and other revenues increased to $2.72 billion from $2.66 billion year-over-year, matching estimates [5] Balance Sheet and Liquidity - As of August 31, 2025, cash and cash equivalents were $1.76 billion, up from $1.21 billion as of November 30, 2024 [7] - Total liquidity at the end of the quarter was $6.26 billion, with total debt decreasing to $26.5 billion from $27.48 billion [7] Booking Trends - Carnival has experienced strong booking momentum since May, with volumes exceeding last year and outpacing capacity growth [8] - Nearly half of fiscal 2026 is already booked at historical high prices, with record booking volumes for 2027 [10] Future Outlook - For Q4 fiscal 2025, Carnival expects adjusted EBITDA of approximately $1.34 billion and adjusted net income of about $300 million, with adjusted EPS projected at nearly 23 cents [11] - The company anticipates adjusted EBITDA for fiscal 2025 to be around $7.05 billion, indicating over 15% growth year-over-year, and adjusted net income to be about $2.925 billion [12]

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Core Viewpoint - Carnival reported quarterly earnings of $1.43 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and showing an increase from $1.27 per share a year ago, indicating a positive earnings surprise of +8.33% [1] Financial Performance - The company achieved revenues of $8.15 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.99% and up from $7.9 billion year-over-year [2] - Over the last four quarters, Carnival has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - Carnival shares have increased approximately 22.9% since the beginning of the year, outperforming the S&P 500's gain of 13% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates of $0.21 on $6.32 billion in revenues for the upcoming quarter and $2.02 on $26.53 billion in revenues for the current fiscal year [7] - The Zacks Rank for Carnival is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Carnival belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]