What Happened?
Shares of Carnival (NYSE: CCL) jumped 8.3% in the afternoon session after after the cruise line operator reported record second-quarter results that sailed past analyst expectations and raised its full-year profit forecast.
The company posted record second-quarter revenues of $6.3 billion and an adjusted net income that more than tripled compared to the same period last year. This performance was driven by strong, sustained demand and robust onboard spending from passengers.
Notably, Carnival announced it had already surpassed its 2026 financial targets 18 months ahead of schedule, including key metrics for profitability and return on invested capital. The company also raised its full-year guidance, now expecting adjusted net income to climb by over 40% compared to 2024, signaling strong confidence in its continued momentum.
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What The Market Is Telling Us
Carnival’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 6.2% on the news that the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes. This development triggered a significant decline in oil prices, easing inflation concerns. Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
Carnival is up 2.6% since the beginning of the year, but at $25.68 per share, it is still trading 9.9% below its 52-week high of $28.49 from January 2025. Investors who bought $1,000 worth of Carnival’s shares 5 years ago would now be looking at an investment worth $1,604.
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