Shares of Carnival Corporation surged approximately 7% on Tuesday following the release of robust second-quarter results that exceeded analyst expectations and an upward revision of their full-year guidance.
As detailed in the company’s earnings report, Carnival posted adjusted earnings of 35 cents per share, outperforming analysts’ estimates of 24 cents, based on data from LSEG. Furthermore, the company achieved record adjusted revenues of $6.3 billion, surpassing the anticipated $6.2 billion.
Net income for the quarter climbed to $565 million, marking a considerable increase from $92 million during the same period last year.
In a call with analysts, CEO Josh Weinstein emphasized the “strong momentum” across all of Carnival’s brands. He stated that robust demand has contributed significantly to the company’s positive trajectory.
Driven by this outperformance, Carnival has raised its full-year guidance, now forecasting adjusted net income to be 40% higher than in 2024, translating to an estimated increase of about $200 million compared to their forecast made in March.
Additionally, Carnival indicated expectations for full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to reach $6.9 billion, an increase from the previous estimate of $6.7 billion.
Weinstein also highlighted that the anticipated opening of the new island destination, Celebration Key in the Bahamas, is less than a month away, with a scheduled opening date of July 19.
According to industry analysis from NerdWallet, cruise demand remains strong in the post-pandemic landscape, with rising prices and fuller ships likely driving profits closer to pre-pandemic levels.
