The cruise operator's earnings will provide an update on the health of the travel industry but they could be equally important as an indicator about the broader economy.
Carnival (CCL) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Carnival's leading market share in the cruise industry sets it up to benefit the most from the forecasted industry growth. I expect Carnival to outperform its FY 2025 guidance, potentially generating $7.49 billion in EBITDA. I'm forecasting Carnival to reduce its debt balance by $3.78 billion in FY 2025, allowing it to exit the year as investment grade, a year ahead of guidance.
Carnival (CCL 4.75%) (CUK 5.06%) suffered during the early days of the pandemic, but this cruise giant has proven its ability to weather tough times -- and go on to recover and grow. The company has soared past analysts' earnings estimates quarter after quarter and reported various records, from revenue levels to bookings.
CCL's first-quarter fiscal 2025 performance is likely to have benefited from robust booking trends, fleet optimization and expansions.
LNG announces Substantial Completion of Train 1 at CCL Stage 3, boosting LNG output and continuing project success ahead of schedule.
Last year was great for investors in cruise line stocks, but the water has been a little more choppy in 2025. Shares of Carnival (CCL 5.02%) (CUK 4.41%), the world's largest cruise line operator by revenue, have declined 16% so far this year.
Despite a 23% drop in Carnival Corporation's stock since December 2024, I maintain a Buy rating due to strong financials and positive outlook for 2025 outlook and beyond. The stock market's overall weakness, particularly in the consumer discretionary sector, and macroeconomic uncertainties have impacted cruise operators, including CCL. However, Carnival's robust 2024 results and promising 2025 projections, with significant EPS growth, indicate that it's no longer overvalued.
Cruise stocks have been falling, but J.P. Morgan says buy because there have been no signs of reduced demand despite all the macro noise.
The Fed announcement will be in the spotlight amid market corrections and slumping consumer confidence. Also, earnings from Fed Ex, General Mills, and Darden.
Carnival (CCL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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