Key Takeaways
- Carnival Corporation reported an unexpected second-quarter profit as passengers spent more for cruises.
- The company said results were boosted by higher prices for tickets, increased onboard spending, and the timing of expenses.
- Carnival noted that demand remained strong, and raised its full-year guidance.
Carnival Corporation (CCL) shares sailed higher in intraday trading Tuesday when the cruise operator posted a surprising quarterly profit and boosted its guidance as customers spent more to sail.
The company reported second-quarter adjusted earnings per share (EPS) of $0.11, while analysts surveyed by Visible Alpha expected a per-share loss of $0.02. Revenue was up 17.7% to $5.78 billion, also above estimates.
Revenue, along with operating income of $560 million, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.2 billion, and booking levels all set second-quarter records. Total customer deposits of $8.3 billion were an all-time high.
Carnival said the results were driven by higher ticket prices, increased onboard spending by passengers, and the timing of expenses between quarters.
Carnival Sees ‘Continued Acceleration of Demand’
Chief Executive Officer (CEO) Josh Weinstein added that the company sees “continued acceleration of demand for 2025 and beyond.” Carnival now anticipates full-year adjusted EBITDA of $5.83 billion, up about $200 million from the previous outlook.
Carnival stock surged nearly 8% to $17.68 as of 11:36 a.m. ET Tuesday, lifting shares of other cruise companies, including Norwegian Cruise Line (NCLH) and Royal Caribbean Group (RCL). However, even with today’s advance, Carnival shares are down nearly 5% year-to-date.