Carnival (NYSE:CCL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Carnival Corporation's shares opened at $32.21 after reporting better-than-expected quarterly earnings, with an EPS of $1.43 compared to the consensus estimate of $1.32.
• The company's quarterly revenue was $8.15 billion, exceeding analyst expectations and marking a 3.3% increase year-over-year.
• A number of analysts have rated Carnival as a "Moderate Buy," with several raising their price targets to as high as $38.00.

Carnival Corporation (NYSE:CCL - Get Free Report) shares gapped up before the market opened on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $30.62, but opened at $32.21. Carnival shares last traded at $29.78, with a volume of 21,031,266 shares.

The company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.11. Carnival had a return on equity of 27.88% and a net margin of 9.72%.The business had revenue of $8.15 billion for the quarter, compared to analyst estimates of $8.09 billion. During the same quarter in the prior year, the company earned $1.27 earnings per share. The company's quarterly revenue was up 3.3% on a year-over-year basis. Carnival has set its Q4 2025 guidance at 0.230-0.230 EPS. FY 2025 guidance at 2.140-2.140 EPS.

Wall Street Analysts Forecast Growth

CCL has been the subject of a number of recent research reports. TD Cowen initiated coverage on Carnival in a research report on Tuesday, July 22nd. They issued a "buy" rating and a $36.00 target price for the company. Melius Research lifted their price target on Carnival from $30.00 to $36.00 and gave the company a "buy" rating in a research report on Monday, September 15th. Loop Capital reiterated a "hold" rating and issued a $22.00 price target on shares of Carnival in a research report on Monday, June 23rd. Barclays boosted their target price on Carnival from $33.00 to $37.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 17th. Finally, Bank of America boosted their target price on Carnival from $31.00 to $38.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. Fifteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, Carnival presently has a consensus rating of "Moderate Buy" and a consensus price target of $31.95.

Insider Buying and Selling

In related news, Director Sir Jonathon Band sold 12,500 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $29.75, for a total value of $371,875.00. Following the transaction, the director directly owned 64,406 shares of the company's stock, valued at approximately $1,916,078.50. This trade represents a 16.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 7.60% of the company's stock.

Hedge Funds Weigh In On Carnival

A number of institutional investors have recently bought and sold shares of the stock. Causeway Capital Management LLC purchased a new stake in Carnival in the 1st quarter worth $518,816,000. Nuveen LLC purchased a new position in shares of Carnival during the first quarter valued at about $432,718,000. Vanguard Group Inc. grew its position in Carnival by 6.0% in the second quarter. Vanguard Group Inc. now owns 126,663,493 shares of the company's stock worth $3,561,777,000 after acquiring an additional 7,157,739 shares in the last quarter. Holocene Advisors LP grew its position in Carnival by 184.3% in the second quarter. Holocene Advisors LP now owns 10,289,947 shares of the company's stock worth $289,353,000 after acquiring an additional 6,669,935 shares in the last quarter. Finally, 59 North Capital Management LP grew its position in Carnival by 117.1% in the second quarter. 59 North Capital Management LP now owns 7,704,185 shares of the company's stock worth $216,642,000 after acquiring an additional 4,155,630 shares in the last quarter. 67.19% of the stock is owned by institutional investors.

Carnival Trading Down 5.0%

The company has a 50-day moving average of $30.54 and a 200 day moving average of $25.26. The company has a market cap of $33.95 billion, a PE ratio of 15.70, a price-to-earnings-growth ratio of 0.68 and a beta of 2.70. The company has a debt-to-equity ratio of 2.58, a current ratio of 0.34 and a quick ratio of 0.30.

Carnival Company Profile

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America and Australia (NAA) Cruise, Europe and Asia (EA) Cruise Operations, Cruise Support, and Tour and Others. The North America and Australia (NAA) Cruise segment includes the Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn.

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