Carnival Q4 Earnings Beat Estimates, Revenues Increase Y/Y

Carnival Corporation & plc CCL reported fourth-quarter fiscal 2025 (ended Nov. 30, 2025) results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.Carnival delivered a strong performance in fiscal 2025, posting record results across its operations. The year was marked by the achievement of investment-grade leverage metrics and the reinstatement of its dividend, reflecting meaningful balance-sheet improvement and solid execution across its cruise portfolio. Performance exceeded management’s expectations for the fourth time during the year, supported by record full-year net yields on a constant-currency basis and disciplined cost control. Adjusted net income increased more than 60%, driven by demand trends that more than offset unit cost pressures.Looking ahead, the company expects this momentum to carry into fiscal 2026, with management pointing to another year of double-digit earnings growth and return on invested capital projected to exceed 13.5%, nearing a 20-year high. With a stronger financial foundation and a diversified portfolio of established brands and destinations, Carnival remains focused on sustaining yield improvements and supporting earnings visibility over the medium term.CCL’s Q4 Earnings & RevenuesIn the quarter under review, the company reported adjusted earnings per share (EPS) of 34 cents, beating the Zacks Consensus Estimate of 25 cents. In the year-ago quarter, CCL posted an adjusted EPS of 14 cents.Carnival Corporation Price, Consensus and EPS Surprise Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation QuoteRevenues in the quarter totaled $6.33 billion, missing the consensus mark of $6.36 billion. The metric increased 6.6% year over year.During the quarter, passenger ticket revenues amounted to $4.05 billion, up from $3.85 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was also pegged at $4.05 billion.Onboard and other revenues increased to $2.27 billion from $2.08 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.21 billion.Carnival’s FinancialsAdjusted net income in the quarter amounted to $454 million, compared with $186 million reported in the prior-year quarter.Adjusted EBITDA totaled $1.48 billion, up from $1.22 billion reported in the prior-year quarter.CCL’s Balance SheetAs of Nov. 30, 2025, cash and cash equivalents were $1.9 billion compared with $1.2 billion in the prior-year period. Carnival ended the quarter with liquidity of $6.4 billion. Total debt (current and long-term) as of Nov. 30, 2025, was $26.64 billion compared with $27.48 billion as of Nov. 30, 2024.Booking Update of CarnivalThe company continues to see solid booking momentum, positioning it to surpass the record yield levels achieved in fiscal 2025. Forward demand remains strong, with booked occupancy for the upcoming year at elevated levels and roughly two-thirds of capacity already secured at higher prices on a constant-currency basis. Pricing has reached historical highs across both North America and Europe, underscoring sustained demand and favorable revenue visibility.Looking further ahead, booking activity for fiscal 2026 and 2027 sailings has strengthened meaningfully, with record volumes achieved over the past three months. Demand remained resilient through the Black Friday and Cyber Monday period, exceeding last year’s strong performance, a trend that management views as supportive heading into the upcoming wave season.Total customer deposits as of Nov. 30, 2025, were $7.25 billion compared with $6.77 billion reported in the preceding quarter.CCL’s FY25 HighlightsTotal revenues in fiscal 2025 came in at $26.62 billion compared with $25.02 billion reported in fiscal 2024.Adjusted EBITDA in fiscal 2025 came in at $7.18 billion compared with $6.11 billion reported in fiscal 2024.In fiscal 2025, adjusted EPS came in at $2.25 compared with $1.42 reported in the previous year.CCL’s Q1 & FY26 OutlookFor first-quarter fiscal 2026, the company expects adjusted EBITDA to be approximately $1.24 billion. It expects fiscal first-quarter adjusted net income to be nearly $235 million. It expects fiscal first-quarter adjusted EPS to be 17 cents.For fiscal 2026, CCL anticipates adjusted EBITDA to be approximately $7.63 billion. Adjusted net income during the year is anticipated to be nearly $3.5 billion. In fiscal 2026, the company expects adjusted EPS to be $2.48.CCL’s Zacks Rank & Stocks to ConsiderCurrently, Carnival has a Zacks Rank #3 (Hold).Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:Crocs, Inc. CROX, which is a leading footwear company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CROX delivered a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a decline of 7.9% from the year-ago number.Guess?, Inc. GES, which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy).GES delivered a trailing four-quarter earnings surprise of 45%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 8% from the year-ago number.Kontoor Brands, Inc. KTB, which is an apparel company, currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for KTB’s current financial-year EPS is expected to rise 12.5% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Guess?, Inc. (GES): Free Stock Analysis Report Crocs, Inc. (CROX): Free Stock Analysis Report Kontoor Brands, Inc. (KTB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks