Is Carnival Stock on Track to Return to Pre-COVID Highs?

Core Viewpoint - Carnival has significantly recovered from the challenges posed by the COVID-19 pandemic, showing strong performance and potential for future growth [1][5][12] Financial Performance - Carnival's revenue for fiscal 2025 second quarter reached $6.3 billion, with customer deposits at $8.5 billion and net yields up 7.2% year over year, all setting new records [6] - Operating income increased by 67% compared to Q2 2024, indicating effective expense management alongside revenue growth [6] - Despite a 222% increase in stock price over the past three years, shares remain 56% below pre-pandemic highs, requiring a 110% rise to reach those levels [2][9] Debt Management - Carnival's long-term debt peaked at $36.4 billion in fiscal 2023 but has been decreasing, with $27.3 billion remaining as of May 31 [5][7] - The company has refinanced $7 billion of debt in 2023, and credit rating agencies have upgraded Carnival's debt, reflecting improved financial health [8] Market Outlook - The cruise industry is expected to continue growing, driven by interest from younger customers and first-time cruisers, presenting significant opportunities for Carnival [10] - Analyst estimates project a 23% increase in Carnival's earnings per share from fiscal 2024 to fiscal 2027, although growth rates are expected to stabilize post-pandemic [11]