Shares of Carnival (CCL +13.41%) were moving higher Tuesday morning on a better-than-expected round of results in the third quarter, the peak summer season.
As a result, the stock was up 12.6% as of 10:09 a.m. ET.
Image source: Carnival.
Carnival delivers again
Carnival stock has struggled this year amid concerns about rising interest rates and higher fuel prices, but the company continues to deliver solid results, proving that demand is strong and margins are holding up.
Revenue in the quarter rose 3.5% to $8.44 billion, which topped the consensus of $8.39 billion. Operating income took a slight hit due to higher fuel costs, falling from $2.27 billion to $2.22 billion, and adjusted earnings per share were flat at $1.43, beating estimates at $1.35. Net yields, or price per passenger, reached an all-time high, up 2.4%, more than a point better than its guidance.
CEO Josh Weinstein said, "We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations."
The company also raised its full-year adjusted EPS guidance from $2.22 to $2.24, slightly ahead of the consensus at $2.21, and said forward trends remain strong with 2027 booked occupancy and pricing at record levels.
NYSE: CCL
Key Data Points
What's next for Carnival
While revenue growth has slowed, Carnival continues to see solid demand and has reduced its debt burden, which has declined from $26.6 billion at the beginning of its fiscal year to $23.9 billion. The company is steadily buying back stock as well, having repurchased $1.2 billion this year and reduced shares outstanding by 2.4% over the last year.
Carnival now trades at a price-to-earnings ratio of 11, which looks like a great price to pay for a company like Carnival that continues to deliver record results.
