Carnival Shares Drop Despite Record Earnings And Upbeat Outlook

Core Viewpoint - Carnival Corporation reported record third-quarter earnings and raised its full-year outlook, driven by strong travel demand and higher pricing, despite a more than 5% drop in shares on the same day [1]. Financial Performance - The company achieved adjusted earnings of $1.43 per share, exceeding Wall Street's forecast of $1.32 [1]. - Revenue reached an all-time high of $8.2 billion, surpassing estimates of $8.09 billion, marking the tenth consecutive quarter of record sales [1]. - Carnival reported record net income of $1.9 billion and adjusted net income of $2.0 billion, with gross margin yields improving by 6.4% year-over-year [2]. - Adjusted return on invested capital increased to 13%, the highest level in nearly two decades [2]. Future Outlook - Carnival raised its full-year 2025 guidance for the third time this year, projecting adjusted net income to rise nearly 55% compared to 2024, which is $235 million above its previous outlook [3]. - For the fourth quarter, the company forecasts net yields to increase by approximately 4.3% in constant currency from record 2024 levels [3].