Carnival surges on earnings beat and strong 2027 bookings

Investing.com -- Carnival Corporation (NYSE: CCL) shares have jumped around 9% premarket after the company reported its latest quarterly earnings.

The cruise line operator reported third-quarter adjusted earnings per share of $1.43, beating analyst estimates of $1.35, while revenue of $8.44 billion exceeded the consensus of $8.39 billion. The company also raised its full-year adjusted net income outlook by more than $150 million compared to June guidance, despite facing $150 million in higher fuel costs.

The company posted record net yields in constant currency, up 2.4% YoY, exceeding June guidance by over one percentage point. Adjusted cruise costs excluding fuel per available lower berth day increased 1.8% in constant currency, one percentage point better than guidance. Shares surged 8.9% following the results.

"We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations," said Chief Executive Officer Josh Weinstein.

Carnival reported customer deposits reached a third-quarter record of $7.6 billion, up nearly 7% from the prior year despite flat capacity growth. The company said both booked occupancy and pricing for full-year 2027 are at record levels, providing a foundation for continued yield growth.

For the fourth quarter of 2026, Carnival expects net yields in constant currency to increase approximately 1.7% compared to 2025 levels. The company projects full-year 2026 adjusted earnings per share of approximately $2.24 and adjusted EBITDA of approximately $7.14 billion.

Chief Financial Officer David Bernstein noted the company opportunistically redeemed $500 million of 7% coupon notes during the quarter using cash on hand. S&P upgraded Carnival's credit rating during the period, making it the second rating agency to award the company an investment grade rating.

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