Carnival Q3 earnings preview: Strong bookings, raised guidance signal potential beat

Carnival Corporation is expected to report third-quarter earnings of $1.32 per share and revenues of $8.11 billion, reflecting year-over-year increases of 3.9% and 2.7%, respectively.

The company has revised its full-year earnings guidance upward, anticipating a net income increase of 40% and adjusted EBITDA of $6.9 billion, outperforming previous forecasts.

Carnival has achieved a perfect track record by consistently exceeding EPS and revenue estimates for the past two years, with recent trends showing more upward revisions in earnings expectations.

The stock is rated as a Strong Buy by quantitative analysts, and since the start of the year, Carnival's share price has increased by 22.5%, outperforming the broader S&P 500 index.

Carnival Corporation Earnings Outlook: Strong Buy Recommendation

Carnival Corporation (NYSE: CCL) is set to release its third-quarter earnings on Monday, September 29, during market hours. Analysts on Wall Street project that the cruise line will report earnings per share (EPS) of $1.32, reflecting a year-over-year increase of 3.9%, alongside revenues of $8.11 billion, which corresponds to a 2.7% rise compared to the previous year.

The cruise company has experienced remarkable financial performance, driven by unprecedented booking levels, even amid historically high prices. In light of these strong fiscal second-quarter results, Carnival has once again revised its full-year earnings guidance upward. The net income is now anticipated to increase by 40%, surpassing the previous forecast of a 30% growth, with adjusted EBITDA expected to reach $6.9 billion, exceeding March's guidance range of $6.6 billion to $6.7 billion.

According to recent analysis, "After the next few quarters, Carnival will demonstrate more normalized earnings growth. The offseason periods have transformed from losses to positive income, suggesting modest improvements leading into fiscal year 2026."

Over the past two years, Carnival has consistently exceeded EPS and revenue estimates, achieving a perfect track record by beating expectations 100% of the time in both categories. In the last three months, there have been eight upward revisions and six downward adjustments in EPS estimates, while revenue estimates have received twelve upward revisions and no downward changes.

Since the beginning of the year, Carnival's share price has risen by 22.5%, significantly outpacing the broader S&P 500 index, which has seen an increase of just over 12%.

Additionally, quantitative analysts have categorized Carnival's stock as a Strong Buy, while the consensus among Wall Street professionals also positions the company as a Buy.