Carnival PLC (CUK) shares soared 7.14% in Monday's trading session, as investors finally embraced the cruise operator's strong third-quarter results and raised full-year outlook. The delayed positive reaction comes after an initial selloff following the earnings announcement last week.
Carnival reported record third-quarter results, with net income rising to $1.85 billion, or $1.33 per share, up from $1.74 billion a year earlier. Adjusted earnings of $1.43 per share topped analyst expectations of $1.32. Revenue increased 3.3% to $8.15 billion, driven by strong travel demand and higher onboard spending. The company also raised its full-year outlook, now expecting adjusted earnings of about $2.93 billion, or $2.14 per share, up from its previous forecast.
Several factors contributed to the stock's surge. The success of Celebration Key, Carnival's new private destination in the Bahamas, has exceeded expectations and is driving increased bookings. CEO Josh Weinstein noted that nearly half of 2026 is already booked at historically high prices, indicating strong future demand. Additionally, record customer deposits of $7.1 billion and improved liquidity of $6.26 billion have strengthened the company's financial position. The market's delayed positive reaction suggests that investors have now fully digested the implications of Carnival's strong performance and optimistic outlook for the cruise industry.
Comments