Carnival Corporation Q3 earnings on deck: What to expect

Carnival Corporation (NYSE:CCL) is set to post third quarter results on Monday, before the opening bell.

Wall Street expects the cruise operator to post EPS of $1.15, implying a rise of over 30%, while revenue is expected to grow 14% to $7.81 billion.

Cruise operators have picked up speed this year after taking a hit from the COVID-19 pandemic, as consumers seeking for vacations are keeping demands high, while also allowing companies to raise ticket prices. According to analysts, because of cruises booked in 2023 for 2024 departures, this year is turning out to be the best for the cruise industry.

However, analysts also warned that the demand for post-COVID travel in 2025 could start to wane, with the travel industry seeing more modest growth.

Seeking Alpha analyst Manika Premsingh said that Carnival’s upcoming results for the third quarter “are expected to see a big earnings upside and margin expansion, even as revenue growth is seen softening compared to Q2 2024.”

Earlier in June, Carnival’s second quarter results beat Wall Street’s expectations, driven by robust demand for cruises.

“Thanks to the 50 basis point rate cut, a lower borrowing cost is likely to trigger the improvement in market and consumer sentiments/ spending trends,” pointed out a recent Seeking Alpha analysis by Juxtaposed Ideas.

Over the last one year, Carnival has beaten both EPS and revenue estimates 100% of the time.

Seeking Alpha analysts, Wall Street and Seeking Alpha’s Quant ratings are bullish and consider the stock Buy and above.

Over the last three months, EPS estimates have seen 15 upward revisions, compared to two downward revisions. Revenue estimates have seen 14 upward revisions versus one downward move.

Carnival stock has gained 1% so far this year, compared to the over 20% rise in the broader S&P500 Index.