Carnival Q4 revenue slightly misses estimates; co reinstates dividend

Overview

• Cruise operator's Q4 revenue slightly missed analyst expectations

• Adjusted net income for Q4 beat analyst expectations

• Company reinstated dividend and plans to simplify corporate structure

Outlook

• Carnival expects 2026 adjusted net income to rise 12% from record 2025 levels

• Company projects 2026 net yields to increase by 2.5% in constant currency

• Carnival anticipates adjusted cruise costs excluding fuel to rise 3.25% in 2026

Result Drivers

• COST MANAGEMENT - Effective cost management contributed to surpassing co's adjusted net income guidance by over $150 mln

• STRONG DEMAND - Strong close-in demand drove record revenues and net yields, outperforming company guidance

• FUEL EFFICIENCY - Fuel consumption per ALBD decreased 5.6% due to operational improvements

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Carnival Corp is $35.50, about 25.3% above its December 18 closing price of $28.34

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPRrJ7840a

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