Carnival cruises to record quarterly profits, but its outlook fails to make waves with investors
Shares of the mega cruise line are up over 25% in the past year.
Carnival sailed past first-quarter expectations, but the stock failed to take off after its outlook came in softer than expected.
The cruise giant reported first-quarter adjusted earnings per share of $0.13, soaring past FactSet estimates of $0.02. Revenue hit a Q1 record of $5.81 billion, also topping projections. Operating income nearly doubled to $543 million.
Carnival CEO Josh Weinstein credited the results to “incredibly strong demand throughout our portfolio, including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending.” Carnival has successfully pulled in a mix of first-time cruisers, brand switchers, and loyalists willing to pay top dollar to board its ships.
However, Weinstein acknowledged that while the company isn’t “completely immune from the heightened macroeconomic and geopolitical volatility,” it remains “on track to have another stellar year across our cruise brands.” The broader travel sector is under pressure as tariff concerns, economic uncertainty, and cooling consumer confidence make investors wary over how long the cruise boom can last.
Carnival raised its full-year adjusted EPS forecast to $1.83, up from its prior estimate of $1.70. But its near-term outlook missed the mark: Carnival projects Q2 EPS of $0.22, slightly below analysts’ estimates of $0.23. Adjusted EBITDA is forecast at $1.30 billion, also missing FactSet’s expectation of $1.35 billion.
