Carnival (NYSE:CCL) Announces Quarterly Earnings Results

Key Points

• Carnival beat earnings expectations, reporting quarterly EPS of $0.41 versus analysts’ estimate of $0.35. Revenue came in at $6.66 billion, slightly below the $6.69 billion consensus.
• The stock fell 10% after the earnings release, with shares opening at $27.18. Even with the drop, Carnival remains a large-cap cruise operator with a market value of about $33.68 billion.
• Carnival continues to return cash to shareholders through a quarterly dividend of $0.15 per share, or $0.60 annualized, for a yield of about 2.2%. Analysts overall remain cautiously positive, with the stock carrying a “Moderate Buy” average rating and a $34.94 target price.

Carnival (NYSE:CCL - Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.35 by $0.06, FiscalAI reports. The firm had revenue of $6.66 billion for the quarter, compared to the consensus estimate of $6.69 billion. Carnival had a net margin of 11.48% and a return on equity of 26.92%.

Carnival Stock Down 10.0%

Shares of NYSE:CCL opened at $27.18 on Tuesday. The stock has a market capitalization of $33.68 billion, a price-to-earnings ratio of 12.14, a PEG ratio of 1.36 and a beta of 2.32. The company has a current ratio of 0.30, a quick ratio of 0.26 and a debt-to-equity ratio of 1.82. The stock has a fifty day simple moving average of $27.33 and a two-hundred day simple moving average of $28.35. Carnival has a 12-month low of $23.45 and a 12-month high of $34.03.

Carnival Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Monday, May 18th were paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.2%. The ex-dividend date was Monday, May 18th. Carnival's dividend payout ratio (DPR) is presently 26.67%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. William Blair restated an "outperform" rating on shares of Carnival in a report on Tuesday, March 3rd. Melius Research set a $36.00 target price on Carnival in a report on Wednesday, June 17th. Wall Street Zen downgraded Carnival from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. The Goldman Sachs Group cut their price objective on Carnival from $34.00 to $30.00 and set a "buy" rating on the stock in a research report on Wednesday, March 11th. Finally, Zacks Research raised Carnival from a "strong sell" rating to a "hold" rating in a research report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $34.94.

Insider Activity

In related news, insider Bettina Alejandra Deynes sold 43,058 shares of Carnival stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $28.10, for a total value of $1,209,929.80. Following the completion of the transaction, the insider owned 69,238 shares in the company, valued at approximately $1,945,587.80. This trade represents a 38.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Sir Jonathon Band sold 11,988 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $26.19, for a total transaction of $313,965.72. Following the completion of the sale, the director owned 52,601 shares of the company's stock, valued at $1,377,620.19. This trade represents a 18.56% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 55,058 shares of company stock worth $1,524,195 in the last 90 days. Company insiders own 7.90% of the company's stock.

Institutional Trading of Carnival

A number of hedge funds have recently bought and sold shares of CCL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Carnival by 5.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 112,167 shares of the company's stock valued at $2,191,000 after purchasing an additional 5,435 shares during the last quarter. Great Lakes Advisors LLC acquired a new stake in Carnival during the first quarter valued at $228,000. Empowered Funds LLC increased its stake in shares of Carnival by 61.6% in the 1st quarter. Empowered Funds LLC now owns 30,437 shares of the company's stock valued at $594,000 after purchasing an additional 11,601 shares in the last quarter. Woodline Partners LP lifted its position in shares of Carnival by 41.9% during the 1st quarter. Woodline Partners LP now owns 88,522 shares of the company's stock valued at $1,729,000 after buying an additional 26,141 shares in the last quarter. Finally, Baird Financial Group Inc. increased its stake in shares of Carnival by 57.0% during the second quarter. Baird Financial Group Inc. now owns 64,720 shares of the company's stock worth $1,820,000 after purchasing an additional 23,484 shares in the last quarter. Hedge funds and other institutional investors own 67.19% of the company's stock.

Key Headlines Impacting Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Carnival is benefiting from record bookings and falling oil prices, which could help improve margins and support cruising demand. Article Title
• Positive Sentiment: Investors are viewing Carnival’s upcoming earnings as a key test for the broader cruise rally, with expectations that strong operating performance could extend the recent move higher. Article Title
• Positive Sentiment: Some coverage suggests Carnival could still have meaningful upside if it continues delivering on bookings, pricing, and profitability. Article Title
• Neutral Sentiment: Several articles simply flagged Carnival as a stock to watch ahead of Tuesday’s earnings release, reinforcing that traders are waiting for fresh guidance rather than reacting to a single new catalyst. Article Title
• Negative Sentiment: Texas has launched an investigation into Carnival’s April data breach, adding legal and reputational risk at a sensitive time for the company. Article Title
• Negative Sentiment: Some analysts are warning that higher fuel prices could hurt Carnival’s near-term earnings, which may limit enthusiasm ahead of results. Article Title

Carnival Company Profile

Carnival Corporation NYSE: CCL is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company's core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

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