Carnival Corporation (CCL)

In the past six months, Carnival Corporation's stock (CCL) has seen a rise of 15.15%. Over the last year, the stock price increased by 62.88%. The company's Q2 2025 earnings report was a significant positive event, with revenue reaching $6.3 billion, a 9.5% increase year-over-year, and adjusted earnings per share of $0.35, significantly beating expectations. Customer deposits for future trips also reached a record level of $8.5 billion. Carnival's stock surged 7.99% post-earnings. The company has delivered positive EPS surprises for eleven consecutive quarters, beating expectations by an average of 169.85% over the past four quarters. Bookings for 2025 are at record levels, and 2026 bookings are tracking similarly. Carnival has also made progress on its balance sheet, prepaying some 2026 debt and refinancing the remainder at a lower rate, which reduces interest expense. TD Cowen initiated coverage of CCL with a "Buy" rating and a $36 price target.

Demand for Carnival Corporation's products and services is seasonal, with the fiscal third quarter being the strongest period due to school holidays and family travel. In fiscal Q3 2024, Carnival's revenue was 33% higher than the next busiest period, and the company expects nearly 70% of its full-year adjusted EPS to come from the third quarter alone. Bookings for 2025 are at record levels, and 2026 bookings are tracking similarly, indicating sustained strong demand. Carnival has also been able to charge its highest prices ever and has expanded its booking window. The company's global footprint allows it to mitigate regional downturns by shifting capacity to other areas.

Carnival Corporation & plc is the largest global cruise company and a major leisure travel provider, operating as a dual-listed company. The company's business primarily involves the sale of cruises, accounting for 99% of its net sales, with revenue from ticket sales and onboard services. Carnival's portfolio includes nine leading cruise line brands. Carnival also owns and operates Holland America Princess Alaska Tours, complementing its Alaska cruise offerings. As of November 2024, Carnival Corporation had a fleet of 94 ships with a total capacity of 269,970 berths.

Carnival Corporation has a significant global presence, with operations spanning North America, Australia, Europe, and Asia. Its net sales are geographically distributed, with North America accounting for 60.3%, Europe for 30.3%, Australia for 5.8%, and other regions for 3.6%. The company's dual headquarters in Miami, Florida, and London, UK, reflect its international reach. The mobility of its cruise ships allows Carnival to shift vessels between regions to meet changing demand across different geographic areas.

Carnival Corporation's brand reputation has been positively impacted by its strong financial recovery and commitment to sustainability in the past year. The company's Q2 2024 earnings marked its first profit in five years, driven by increased passenger ticket revenues, onboard spending, and higher occupancy rates. Record-breaking customer deposits also indicate strong consumer demand and positive perception. Carnival Cruise Line became the first cruise line to connect to shore power at PortMiami, a move estimated to reduce emissions. Historically, Carnival has faced reputation challenges due to incidents like fires and power losses on its ships, but the company has generally rebounded.

Carnival Corporation is owned by 59.76% institutional shareholders, 34.33% Carnival insiders, and 5.91% retail investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Corp, and Barrow Hanley Mewhinney & Strauss LLC. The largest individual shareholder is Micky Meir Arison, who owns 13.46% of the company's shares.