Carnival's Q2 Earnings & Revenues Top Estimates, FY25 View Up

Core Insights - Carnival Corporation & plc (CCL) reported strong second-quarter fiscal 2025 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][4] - The company achieved its 2026 SEA Change financial targets 18 months ahead of schedule, indicating operational efficiency and strategic growth [2] - CCL aims to maintain high-margin revenue growth and robust profitability through favorable booking positions [3] Financial Performance - Adjusted earnings per share (EPS) for Q2 were 35 cents, surpassing the Zacks Consensus Estimate of 24 cents by 45.8%, compared to 11 cents in the same quarter last year [4] - Revenues for the quarter reached $6.33 billion, exceeding the consensus estimate of $6.21 billion by 2% and increasing by 9.5% year over year [4] - Adjusted net income for the quarter was $470 million, a significant increase of 250.7% from $134 million year over year, driven by higher ticket prices and onboard spending [6] Revenue Breakdown - Passenger ticket revenues amounted to $4.1 billion, up from $3.75 billion in the prior-year quarter, exceeding estimates of $3.96 billion [4] - Onboard and other revenues increased to $2.22 billion from $2.03 billion year over year, aligning closely with estimates [5] Balance Sheet and Liquidity - As of May 31, 2025, cash and cash equivalents were $2.15 billion, up from $1.21 billion as of November 30, 2024, with total liquidity at $5.17 billion [7] - Total debt as of May 31 was $27.3 billion, slightly down from $27.48 billion as of November 30, 2024 [7] Booking and Future Outlook - CCL reported strong advance bookings for 2025 and 2026, with record levels and historical high pricing, indicating robust demand [8][9] - For Q3 fiscal 2025, the company expects adjusted EBITDA of approximately $2.87 billion and adjusted net income of about $1.8 billion [11] - The fiscal 2025 outlook has been raised, with adjusted EBITDA now anticipated to be approximately $6.9 billion, reflecting over 10% growth year over year [12]