Carnival Stock Surges 7% on Q2 Beat & Raised Guidance

Carnival Corp. (NYSE:CCL) shares jumped more than 7% intra-day today after the company reported a notable improvement in its Q2 performance, with net income rising by nearly $500 million compared to the same period last year.

The cruise line company posted an EPS of $0.11, surpassing the analyst consensus of -$0.02. Carnival also achieved a record revenue of $5.78 billion for the quarter, exceeding expectations by $100 million and marking a significant year-over-year increase.

CEO Josh Weinstein attributed the successful quarter to strategic efforts in enhancing commercial operations and growth initiatives. The record second quarter was driven by higher ticket prices, increased onboard spending, and the timing of expenses between quarters.

Looking forward, Carnival raised its fiscal 2024 net yield guidance to approximately 10.25% due to strong demand. The company projects an adjusted net income of about $1.55 billion, which is $275 million higher than the guidance provided in March.

For Q3/24, Carnival expects net yields to increase by approximately 8.0% compared to 2023, with adjusted net income anticipated to grow by 35%.