Carnival (US:CCL) ZACKS·2025-10-22 14:21Core Insights - Carnival Corporation & plc (CCL) is experiencing record financial performance driven by strong demand and disciplined pricing execution, with a 4.6% year-over-year increase in net yields in Q3 fiscal 2025, surpassing prior guidance by over one percentage point [1][8] - The company achieved a record quarterly net income of $2 billion and a 13% return on invested capital (ROIC), the highest in nearly 20 years, indicating successful pricing power and enhanced guest experience [2] - Nearly half of Carnival's bookings for 2026 are secured at higher prices, reflecting a favorable yield environment and growing interest among new-to-cruise travelers [3] Financial Performance - Carnival's pricing reached all-time highs for both North American and European itineraries, with onboard spending exceeding expectations [2] - The company is projecting approximately 15% EBITDA growth in fiscal 2025, primarily driven by pricing gains rather than volume expansion [4] - The Zacks Consensus Estimate for Carnival's fiscal 2025 earnings per share has been revised upward from $2.01 to $2.15, indicating strong analyst confidence [10] Market Position - CCL shares have surged 62.1% over the past six months, outperforming the industry growth of 22.6% [6] - CCL is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.66X, below the industry average of 17.38X, suggesting a potential undervaluation [9] - The company is expected to report a 54.1% rise in fiscal 2025 earnings, outperforming competitors like Royal Caribbean and Norwegian Cruise, which are projected to rise by 30.9% and 32.6%, respectively [11]