Cruise Line Giant Carnival Sets Sail for Record Year Ahead of Rival Earnings Reports
Carnival Corporation’s (CCL) stock took a brief dip on Monday after the company announced its third-quarter earnings, which surpassed Wall Street expectations. The cruise line reported an adjusted profit of $1.27 per share, beating analysts’ estimates of $1.17 per share. Revenue also reached a record $7.89 billion, a 15% increase from last year.
Despite the initial stock slide, Carnival’s CEO Josh Weinstein remains optimistic about the company’s prospects, citing operational improvements and high-margin growth. The company has already booked a significant portion of its 2025 capacity, with higher prices than last year. Weinstein noted that Carnival is well-positioned for a record start to 2026, with unprecedented booking volumes in the last three months.
As a result, Carnival has raised its 2024 guidance, expecting net yields to increase by 10.4% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by 40% to around $6 billion. The company also expects a 5% increase in net yields and a 20% increase in adjusted EBITDA for the fourth quarter.
The news had a ripple effect on rival cruise line stocks, with Royal Caribbean (RCL) dipping 0.9% and Norwegian Cruise Line (NCLH) falling 1.3%. However, both stocks have since pared their losses, with RCL trading near its 169.47 buy point and NCLH hovering around its 20.65 buy point.
In related news, AT&T is reportedly exiting its DirecTV business, which is set to merge with rival Dish. The deal is expected to create a new satellite TV giant, marking a significant shift in the industry landscape.
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