3 Reasons to Buy the Dip on Carnival Stock

Core Insights - Carnival, the world's largest cruise line, reported record results in its third quarter, which is typically the strongest period of the year [1] Financial Performance - Revenue increased by 3.3% to $8.15 billion, surpassing estimates of $8.11 billion [2] - Adjusted net income rose from $1.75 billion to $1.98 billion, equating to $1.43 per share, exceeding the consensus estimate of $1.32 [2] - The company raised its guidance, projecting a 55% increase in adjusted net income for the year to $2.95 billion, or $2.14 per share [3] - Expected net yields are up 5.3%, while adjusted costs increased by 3.3%, with a forecasted 15% rise in adjusted EBITDA to $7.05 billion [3] Stock Market Reaction - Despite strong earnings, Carnival's stock fell by 4% after the report, with a 10.4% decline from its peak a month ago [4] Booking Trends - Strong booking trends continue, with record customer deposits of $7.1 billion for the quarter, and bookings for 2026 at historical high prices [6] - The new private island, Celebration Key, is performing well and is expected to drive demand [7] - Interest rates are decreasing, which may benefit the company moving forward [8]