In the latest episode of Asking for a Trend, host Josh Lipton examined Carnival Corporation’s (NYSE: CCL) third-quarter earnings, which exceeded Wall Street expectations, as well as broader market dynamics.
Carnival CEO Josh Weinstein discussed the company’s strong performance, despite a slight dip in stock price following the earnings report.
Carnival’s Q3 earnings beat analyst estimates with an adjusted earnings per share (EPS) of $1.27, surpassing the projected $1.16. The company reported a revenue increase of 15.2% year-over-year to $7.9 billion, also ahead of expectations. Operating income rose 34% to $2.2 billion, while adjusted EBITDA increased by 25%, reaching $2.8 billion. Carnival continues to see strong bookings, particularly for 2025, with higher prices and solid demand fueling optimism.
However, despite these record-setting financials, Carnival’s stock fell by 2.08% to $18.16. The decline is attributed to the company’s forecast for lower-than-expected net yields in the fourth quarter, which led some investors to react cautiously. The cruise operator expects fourth-quarter adjusted EPS of $0.05, below analyst estimates of $1.16. Still, the company projects full-year net yields to rise by 10.4%, slightly higher than previous guidance.
Shifting focus to market trends, reporter Josh Schafer highlighted key developments, including the relationship between former President Trump’s election odds and the performance of the S&P 500 index. Julie Hyman further analyzed the stock market’s reactions and the broader travel sector, which has seen varying trends across cruise lines and other travel stocks.
Despite the stock’s dip, Carnival remains optimistic, projecting adjusted EBITDA of approximately $6 billion for 2024, marking a 40% year-over-year increase. As bookings for 2025 surge, Weinstein noted that Carnival is poised for continued growth, with early indicators suggesting strong demand for the following years.
Overall, Carnival’s record-setting performance signals robust demand in the cruise industry, even as the market remains watchful of potential yield fluctuations.
Yahoo Finance, Investopedia, and Investor’s Business Daily contributed to this report.
