The most recent trading session ended with Carnival (CCL) standing at $23.87, reflecting a -2.61% shift from the previous trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.27%. Prior to today's trading, shares of the cruise operator had gained 7.78% outpaced the Consumer Discretionary sector's gain of 6.45% and the S&P 500's gain of 6.9%.The upcoming earnings release of Carnival will be of great interest to investors. The company is predicted to post an EPS of $0.23, indi ...

Core Viewpoint - Carnival and Disney are both strong investment options, with recent stock momentum suggesting potential for continued growth [1] Group 1: Carnival - Carnival is the world's largest cruise line operator, benefiting from a resurgence in the cruise industry, with strong demand leading to record operating results [3] - In Q1, Carnival reported revenue of $5.8 billion, a 7.5% year-over-year increase, driven by higher capacity and pricing, and ended the quarter with $7.3 billion in customer deposits, surpassing last year's record of $7 billion [4] - The company achieved adjusted EPS of $0.13, reversing a loss from the previous year, indicating improved financial consistency, with expectations for continued growth from new initiatives like Celebration Key and new ship deliveries [5] - Carnival is guiding for full-year EPS of $1.83, representing a 29% increase from 2024, while reducing total debt by $4 billion to $27 billion, which supports a higher valuation as it trades at a forward P/E of 13, significantly lower than Disney's 20 [6] - The combination of value and growth potential makes Carnival an attractive long-term investment [7] Group 2: Disney - Disney has faced challenges in recent years, with stock down 7% over the past five years, but recent trends suggest a potential turnaround [8][9] - In fiscal Q2, Disney reported a 7% year-over-year revenue increase and a 20% surge in adjusted EPS, driven by strong performance in streaming, with Disney+ adding 1.4 million customers [10] - Growth in Hulu and ESPN digital properties, along with strategic bundling efforts, are contributing to positive momentum, with a target EPS of $5.75 for fiscal 2025, a 16% increase from the previous year [11] - Disney's diversified profile and globally recognized brand provide a strong foundation for future growth, particularly in streaming media [12] Conclusion - While both Carnival and Disney present compelling investment opportunities, Carnival is viewed as having greater upside potential due to its undervalued growth story [13]

Industry Overview - Travel stocks have faced challenges at the start of 2025, but cruise stocks are showing positive momentum with a 6.4% year-over-year increase in cruise spending in March, compared to a 4.5% increase in February [1] - Overall travel spending saw a decline of 3.5%, while cruise spending surged by 15.6% from the previous month [1] - The Zacks Leisure and Recreation Services industry group ranks in the top 38% of approximately 250 Zacks Ranked Industries, indicating potential outperformance in the next 3 to 6 months [2] Royal Caribbean - Royal Caribbean Cruises (RCL) has reached all-time high stock prices and operates three global brands: Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises [4] - RCL reported adjusted earnings per share (EPS) of $2.71 for the first quarter, exceeding the Zacks Consensus Estimate of $2.53 by 7.1%, with revenues increasing 7.3% year-over-year to $4 billion [7] - The company has raised its full-year adjusted EPS guidance to a range of $14.55-$15.55, up from $14.35-$14.65 [9] - Analysts have increased their full-year earnings estimates for RCL by 3.98% in the past 60 days, projecting a 30.7% year-over-year increase in EPS for 2025 [10] Carnival - Carnival Corporation (CCL) operates a fleet of over 90 ships and is experiencing a positive trend in onboard revenues, which grew approximately 10% year-over-year in the first quarter of fiscal 2025 [12] - CCL's bottom line is projected to increase by 30.3% in fiscal 2025 to $1.85 per share, with revenues expected to rise by 4.1% to $26.1 billion [14] - CCL has exceeded earnings estimates in each of the past four quarters, with a trailing four-quarter average earnings surprise of 458.4% [14]

Core Insights - Carnival Corporation & plc (CCL) is shifting towards high-impact marketing strategies to enhance bookings due to limited capacity growth, with no new ship deliveries in 2026 and only three scheduled over the next four years [1][8] Marketing Strategies - In Q1 fiscal 2025, Carnival executed extensive marketing campaigns during Wave season, leveraging cultural events like the Oscars and Super Bowl, featuring brand ambassadors and generating over 5 billion media impressions [2] - Costa Cruises and AIDA Cruises also engaged in promotional activities, with Costa enhancing its visibility through a live performance during the Sanremo Music Festival and AIDA revamping onboard experiences [2] Financial Performance - Carnival reported historically high pricing across all core programs, with over 80% of 2025 capacity booked by the end of Q1 fiscal 2025, and record booking volumes for 2026 [3][8] - The strong marketing execution contributed to a 7.3% year-over-year increase in net yields during the fiscal first quarter [3][8] Competitive Landscape - Royal Caribbean Group (RCL) is focusing on customer loyalty through app adoption and personalization, achieving record demand for new ships and the best Wave season in company history [5] - Norwegian Cruise Line Holdings Ltd. (NCLH) is adopting a targeted approach with experiential upgrades and significant enhancements to its offerings, aiming for brand differentiation and premium pricing [6] Stock Performance and Valuation - CCL shares have increased by 26.7% over the past three months, outperforming the industry growth of 12.7% [7] - CCL trades at a forward price-to-earnings ratio of 12.24X, below the industry average of 18.57X [10] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 30.3% and 12.8%, respectively [11] - Current EPS estimates for fiscal 2025 are 1.85, with a year-over-year growth estimate of 30.28% [12]

Carnival (CCL 0.76%) went from a full stop to full speed ahead, and the result was, as you might expect, a dramatic improvement in its business performance. But what happens now that the cruise line is at the top of its game?Here's what's happened and why 2026 could be a much less impressive year for Carnival.What does Carnival do?Carnival operates nine branded cruise lines, including its namesake brand. It is one of the largest cruise ship owners and operators on the planet. Cruise lines have two main sour ...

Carnival (CCL) closed the most recent trading day at $24.02, moving +0.8% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.83%.Shares of the cruise operator have appreciated by 21.03% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 6.96% and the S&P 500's gain of 5.17%.Analysts and investors alike will be keeping a close eye on the performance of Carniva ...

Core Viewpoint - Carnival's stock has shown significant recovery, jumping 27% in May after a period of volatility and concerns regarding debt and regulatory pressures [1][8]. Financial Performance - For the fiscal first quarter of 2025, Carnival reported a revenue increase of 7% year-over-year to $5.8 billion, with operating income nearly doubling to $543 million [3]. - Advanced booking positions matched last year's record highs, and bookings for 2026 exceeded previous records, with total deposits reaching a first-quarter record of $7.3 billion [3]. Business Strategy - Management is focused on driving demand and improving cost efficiency through a robust digital advertising campaign and the promotion of its exclusive resort, Celebration Key [5]. - The company is also ordering new ships to meet growing demand and enhance sales growth over the coming years [5]. Debt Management - Carnival has made significant strides in debt reduction, refinancing $5.5 billion of debt with lower-interest notes, which is expected to save $145 million in annual interest expenses [6]. - Despite these efforts, total debt remains high at $27 billion, which is above historical levels [6]. Market Sentiment - The stock's decline in February was attributed to concerns over tax compliance, but it has since become attractive to bargain hunters, trading at 11 times forward one-year earnings [8]. - An analyst upgrade from HSBC, changing the rating from reduce to hold, contributed to the stock's recent positive momentum [8].

Core Insights - Carnival Corporation & plc (CCL) is experiencing a significant increase in onboard revenues, with a year-over-year growth of approximately 10% in Q1 fiscal 2025, contributing to a net yield increase of 7.3%, surpassing the company's guidance of 4.6% [1][2] Revenue Growth and Consumer Behavior - The growth in onboard revenues is attributed to strong close-in demand and broad-based increases across all spending categories, including food and beverage, retail, casino, and air services, indicating resilient consumer behavior despite macroeconomic uncertainties [2] - Management noted that onboard trends remained strong in March, suggesting continued momentum into Q2 fiscal 2025 and beyond [3] Strategic Initiatives - CCL's strategy focuses on enhancing onboard experiences through partnerships with renowned chefs and technology upgrades for seamless purchases, which are proving effective in boosting guest engagement and spending [3][9] - The company has a significant portion of 2025 already booked, with limited new capacity additions through 2026, making onboard monetization increasingly important [3] Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) is a key competitor benefiting from strong onboard revenue momentum, driven by higher guest participation in premium activities and robust direct-to-consumer demand [4] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its offerings to improve guest satisfaction and drive revenues, with successful digital transformation efforts that increase pre-cruise engagement and onboard spending [6][7] Stock Performance and Valuation - CCL shares have increased by 7.1% over the past three months, outperforming the industry growth of 0.9% [8] - The company trades at a forward price-to-earnings ratio of 12.12X, significantly lower than the industry average of 18.21X, indicating potential undervaluation [10] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings suggests a year-over-year increase of 30.3% and 12.8%, respectively, with EPS estimates for fiscal 2025 remaining unchanged over the past 30 days [14]

VALENCIA, Calif., June 2, 2025 /PRNewswire/ -- Cunard has unveiled its latest program of extraordinary voyages with 195 new itineraries across its iconic fleet, visiting 115 destinations in 32 countries between April 2027 and January 2028. The new itineraries include 93 UNESCO World Heritage sites. With 18 overnight port calls and 33 late-evening departures, the new program offers guests even more opportunities to explore the world. With more than 185 new voyages, Cunard's ships will call at 115 unique dest ...

Core Viewpoint - Carnival's stock has seen significant volatility in 2023, currently trading around $23, down from a 52-week high of $28.72, despite more than doubling since 2022 [1] Group 1: Financial Performance - Carnival reported record quarterly revenue of $5.8 billion in Q1, with operating income nearly doubling year over year to $543 million, driven by strong demand across its cruise brands [6] - Analysts expect Carnival's earnings per share to improve from $1.42 in fiscal 2024 to $1.86 in fiscal 2025, despite the company carrying $27 billion in debt [9] - The company saved $94 million in interest expense last quarter due to lower debt, which has positively impacted profitability [8] Group 2: Market Demand and Pricing - Demand for cruises is exceeding the limited availability of rooms, leading to higher pricing and historically high prices for 2025, with bookings extending into 2026 [7] - The consensus price target for Carnival's stock is $27.73, indicating a potential upside of 20% from current prices [3] Group 3: Risks and Challenges - Declining consumer confidence could weaken demand for cruise vacations, with consumer confidence down for five consecutive months as of April [2][10] - Potential new taxes on cruise lines could negatively impact Carnival's profitability, as indicated by comments from Commerce Secretary Howard Lutnick [11] Group 4: Future Outlook - The upcoming launch of Celebration Key, an exclusive destination, is expected to drive strong demand through 2030, potentially offsetting risks and contributing to revenue growth [13] - If Carnival's earnings reach analyst estimates of $2.46 in 2027, with a fair P/E of 15, the share price could rise to nearly $37, implying a 60% upside over the next few years [13]