Carnival Corporation (CCL) will report its results for the fourth quarter on Friday, before market open.
Wall Street expects the company to post EPS of $0.25 reflecting a rise of 78.6%, on a revenue of $6.37B, implying an increase of 7.2% during the quarter.
Carnival has been riding strong demand for cruise vacations, lifting ticket prices and boosting onboard spending through bundled packages and perks. The company reported record quarterly revenue and raised its full-year profit forecast, supported by investments in unique destinations, including its $600 million Celebration Key resort in the Bahamas.
At the same time, the cruise operator faces rising costs, including higher fuel expenses and maintenance dry docks, which are expected to weigh on earnings growth in 2026. The company also highlighted that potential consumer pullback on discretionary spending could pose a risk, even as fiscal 2025 results showed strong profits and robust bookings.
Jefferies highlights Carnival as a Top Pick in Leisure, citing its “improving business quality” and disciplined capacity growth. Analyst David Katz says Carnival can focus on “same-ship pricing growth through targeted marketing spend” and views the stock as “significantly undervalued, both versus peers and versus its own historical levels,” reaffirming a Buy rating.
According to Seeking Alpha’s Quant rating system, CCL is rated strong buy, with a score of 4.77 out of 5, with grades of A both in terms of profitability and revisions, A- in growth, a B in terms of momentum and a C+ in valuation.
Over the last two years, CCL has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
In the last three months, EPS estimates have seen 18 upward revisions and one downward move. Revenue estimates have seen 14 upward revisions and four downward revisions.