Why Is Carnival (CCL) Down 3.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Carnival (CCL). Shares have lost about 3.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Carnival due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Carnival Corporation before we dive into how investors and analysts have reacted as of late.Carnival Q3 Earnings Beat Estimates, FY25 View RaisedCarnival reported impressive third-quarter fiscal 2025 (ended Aug. 31, 2025) results, with adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year. This upside was primarily driven by sustained demand strength and robust onboard revenues.Furthermore, Carnival raised its full-year fiscal 2025 adjusted net income guidance for the third consecutive quarter, supported by stronger net yields along with effective cost and balance sheet management.Moving ahead, the company aims to continue focusing on its strategy to deliver same-ship, high-margin revenue growth amid a favorable booking, to position for robust revenue visibility and profitability in fiscal 2026 and beyond.CCL’s Earnings & RevenuesIn the quarter under review, the company reported adjusted earnings per share (EPS) of $1.43, beating the Zacks Consensus Estimate of $1.32 by 8.3%. In the year-ago quarter, CCL posted an adjusted EPS of $1.27.Revenues in the quarter totaled $8.15 billion, beating the consensus mark of $8.07 billion by 1%. The metric also increased 3.3% year over year.During the quarter, passenger ticket revenues amounted to $5.43 billion, up from $5.24 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was pegged at $5.25 billion.Onboard and other revenues increased to $2.72 billion from $2.66 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.72 billion.Carnival’s FinancialsAdjusted net income in the quarter amounted to $1.98 billion, up 13.2% year over year from $1.75 billion. The uptick was attributable to strong close-in demand and effective cost management.Adjusted EBITDA totaled $3 billion, up from $2.82 billion reported in the prior-year quarter.CCL’s Balance SheetAs of Aug. 31, 2025, cash and cash equivalents were $1.76 billion compared with $1.21 billion as of Nov. 30, 2024. Carnival ended the quarter with liquidity of $6.26 billion. Total debt (current and long-term) as of Aug. 31, 2025, was $26.5 billion compared with $27.48 billion as of Nov. 30, 2024.Bookings Update of CarnivalCarnival has continued to see strong momentum in bookings since May, with volumes higher than last year and well ahead of capacity growth. This performance highlights the effectiveness of the company’s demand generation efforts and the strength of its guest experiences, which are fueling excess demand and sustaining pricing power.Looking ahead, nearly half of fiscal 2026 is already booked, matching the record levels of the same time last year, but now at historical high prices in constant currency across both North America and Europe. The outlook for fiscal 2027 is also encouraging, with the year already achieving record booking volumes during the third quarter, positioning Carnival well for long-term growth.Total customer deposits as of Aug. 31, 2025, were $6.69 billion compared with $8.08 billion reported in the preceding quarter.CCL Unveils Q4 View & Raises Fiscal 2025 OutlookFor fourth-quarter fiscal 2025, Carnival expects adjusted EBITDA to be approximately $1.34 billion. It expects adjusted net income to be about $300 million. The company expects adjusted EPS to be nearly 23 cents.For fiscal 2025, the company now anticipates adjusted EBITDA to be approximately $7.05 billion (up from the previous expectation of about $6.9 billion), indicating more than 15% growth year over year. Adjusted net income is now anticipated to be about $2.925 billion, up from the previously expected value of $2.69 billion. CCL now expects adjusted EPS to be approximately $2.14, up from $1.97 expected earlier.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.The consensus estimate has shifted 14.41% due to these changes.VGM ScoresAt this time, Carnival has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Carnival has a Zacks Rank #1 (Strong Buy). 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Click to get this free report Carnival Corporation (CCL): 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