Carnival posts better-than-expected results on ‘incredibly strong demand’

Key Takeaways

• Carnival Corporation reported a better than expected fiscal first-quarter profit as well as record-breaking revenue.
• CEO Josh Weinstein said the cruise line saw "incredibly strong demand" in the period.
• The positive performance was tempered by Carnival's current-quarter outlook, which missed analysts' forecasts.

Carnival Corporation (CCL), which operates the Carnival Cruise Lines, reported better-than expected fiscal first-quarter profits and record revenues on Friday. However its current-quarter projection fell short of estimates.

The company reported adjusted earnings (EPS) per share of $0.13. Revenues reached a new record of $5.81billion in the first quarter. Both exceeded Visible Alpha’s forecasts.

CEO Josh Weinstein said the performance was driven by "incredibly strong demand throughout our portfolio including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending." 

Weinstein added that while the company was "not completely immune from the heightened macroeconomic and geopolitical volatility," Carnival remains "on track to have another stellar year across our cruise brands."

Carnival now expects to earn $1.83 per share for the full year, up from its previous estimate $1.70. Weinstein noted the higher outlook "incorporates our increased first-quarter yield results and reduced interest expense thanks to our recent successful refinancings."

Q2 Outlook is Weaker than Expected

The company expects adjusted earnings per share (EPS), or adjusted EBITDA, to be $0.22 in the second quarter of fiscal 2025. Visible Alpha surveyed analysts, who expected $0.24 per share and $1.37 billion. 

In late morning trading, shares of Carnival Corporation remained relatively unchanged. They have risen by about 25% in the past year.