Core Insights - Carnival's shares have risen approximately 11% in the past month and nearly 40% over the last 12 months, driven by strong second-quarter results that exceeded expectations [2][3] - The company reported revenue of approximately $6.33 billion, a 9% increase year-over-year, and net income of $565 million, up from $92 million a year ago [2] - Carnival has raised its full-year forecast, projecting adjusted net income to be 40% greater compared to 2024, indicating strong demand for leisure cruising post-Covid-19 [2] Financial Performance - Carnival's revenues have shown significant growth, with a 12.7% increase from $23 billion to $25 billion in the last 12 months, compared to a 5.5% growth for the S&P 500 [6] - The company's quarterly revenues increased by 7.5% to $5.8 billion in the latest quarter from $5.4 billion the previous year, while the S&P 500 saw a 4.8% improvement [7] - Carnival's operating income over the past four quarters was $3.8 billion, reflecting a moderate operating margin of 15.1% [7] Valuation Metrics - Carnival's price-to-sales (P/S) ratio is 1.3 compared to 3.1 for the S&P 500, indicating it may be slightly undervalued [4][6] - The price-to-earnings (P/E) ratio for Carnival stands at 16.4, while the S&P 500's P/E is 26.9, suggesting a more attractive valuation [6] Financial Stability - Carnival's debt was $28 billion at the end of the most recent quarter, with a market capitalization of $34 billion, resulting in a debt-to-equity ratio of 84.4% [8] - The company's cash (including cash equivalents) is $833 million out of total assets of $49 billion, leading to a cash-to-assets ratio of 1.7% [8] Resilience in Downturns - CCL stock has historically performed worse than the S&P 500 during downturns, with significant declines during the Covid pandemic and the inflation shock [9][10][11] - The stock has not yet recovered to its pre-crisis peak values, indicating potential vulnerabilities in economic downturns [10][11]

Group 1 - Carnival Corporation is expected to announce Q2 earnings on June 24, with an anticipated earnings per share of $0.24, up from $0.11 in the same quarter last year [2] - The consensus revenue estimate for the quarter is $6.2 billion, reflecting a growth of approximately 7.3% compared to the previous year, driven by robust demand for leisure cruising post-Covid-19 [2] - The company's revenue growth is supported by increased capacity, heightened onboard revenues, and recent price hikes, alongside a focus on fleet optimization leading to strong operational performance [2] Group 2 - Carnival's current market capitalization is $31 billion, with revenue over the last twelve months reported at $25 billion, and operational profits of $3.8 billion, resulting in a net income of $2.1 billion [3] - Historical data indicates that Carnival has had 19 earnings data points over the past five years, with positive one-day returns occurring approximately 53% of the time, although this percentage drops to 50% when considering the last three years [5] - The median of the positive one-day returns is 5.4%, while the median of the negative returns is -2.5% [5]