• Carnival Corporation (NYSE:CCL) is set to release its quarterly earnings with an estimated EPS of $0.25, marking a 78.6% increase year-over-year.
• The company's revenue is projected to reach approximately $6.38 billion, a 7.2% increase from the same quarter last year.
• Carnival faces challenges such as high costs and liquidity concerns, with a debt-to-equity ratio of 2.34 and a current ratio of 0.34.

Carnival Corporation (NYSE:CCL) is a major player in the cruise industry, known for its extensive fleet and global reach. As the largest cruise line by revenue in the United States, Carnival operates a variety of brands catering to different market segments. The company faces competition from Royal Caribbean and Norwegian Cruise Line, both of which have recently seen significant stock gains.

Carnival is set to release its quarterly earnings on December 19, 2025, with Wall Street analysts estimating an EPS of $0.25. This represents a notable 78.6% increase from the previous year's fourth quarter EPS of $0.14, as highlighted by Zacks. The company's revenue is projected to reach approximately $6.38 billion, reflecting a 7.2% increase from the same quarter last year.

The company's market capitalization stands at $37 billion, and it has generated $26 billion in revenue over the past year. Operating profits reached $4.3 billion, with a net income of $2.6 billion. Despite a previous "beat and raise" performance, Carnival's stock experienced a decline, but it has increased by 10% over the past month. This positive trend is noteworthy, especially as competitors like Royal Caribbean and Norwegian Cruise Line have seen even larger gains.

Carnival's financial metrics provide insight into its market valuation. The company has a P/E ratio of approximately 13.93, indicating how the market values its earnings. The price-to-sales ratio is about 1.40, while the enterprise value to sales ratio is 2.39. These figures suggest how much investors are willing to pay per dollar of sales and the company's total worth relative to its sales.

Despite these positive indicators, Carnival faces challenges such as margin pressures from high costs, ship maintenance, and ongoing destination investments. The debt-to-equity ratio is 2.34, indicating financial leverage, while the current ratio of 0.34 may suggest potential liquidity concerns. Investors are keenly watching the upcoming earnings report to see if Carnival can lead the rally into 2026, rather than just following the upward trend.