Carnival shares pop on earnings beat and raised full-year outlook

Core Insights - Carnival shares increased approximately 7% following the release of stronger-than-expected second-quarter results and an upward revision of its full-year guidance [1] - The company reported adjusted earnings of 35 cents per share, surpassing analyst expectations of 24 cents, with adjusted revenue reaching a record $6.3 billion compared to the anticipated $6.2 billion [1] Financial Performance - Net income rose significantly to $565 million, up from $92 million a year ago, indicating strong financial growth [2] - Carnival raised its full-year guidance, now expecting adjusted net income to be 40% higher than 2024, translating to an increase of about $200 million from its previous forecast in March [2] Future Expectations - The company anticipates full-year adjusted EBITDA to be $6.9 billion, an increase from the prior estimate of $6.7 billion [3] - Carnival is set to open the island Celebration Key in the Bahamas on July 19, which is expected to contribute positively to future revenues [3] Industry Trends - Post-pandemic cruise demand remains robust, with expectations of higher prices and fuller ships, which are likely to drive profits closer to pre-pandemic levels [4]