Carnival Quietly Puts Pricing Fears To Rest With Standout Quarter

Core Viewpoint - Carnival Corporation reported record fourth-quarter profit and cash flow, leading to a rise in stock price and an increased price forecast from Goldman Sachs analyst Lizzie Dove [1]. Earnings Snapshot - The company reported adjusted EPS of 34 cents, exceeding consensus by 9 cents. Revenue reached a record $6.33 billion, an increase of $400 million, although slightly below the $6.37 billion estimate [2]. Future Guidance - For Q1 2026, Carnival expects adjusted earnings of 17 cents per share, slightly below the 18-cent estimate. For the full year 2026, the forecast is approximately $2.48 per share, above the $2.42 estimate [3]. Analyst View - Analyst Lizzie Dove noted that Carnival's results and guidance surpassed expectations despite uncertainties in the cruise market. She emphasized the strength of the company's diversified portfolio, brand enhancements, and private island investments [4]. - The strong fourth-quarter net yield alleviated concerns regarding Caribbean demand and pricing pressure, establishing a solid foundation for 2026 guidance. The first-quarter fiscal 2026 guidance aligns with expectations, but the net yield growth outlook for the year appears measured [5]. Growth Outlook - Dove anticipates underlying net yield growth to accelerate throughout the year, with expected growth rates of 1.8% in Q1, 2.9% in Q2, 3.2% in Q3, and 2.6% in Q4 of fiscal 2026 [6].