Carnival Q1 adjusted profit beats estimates, launches $2.5 bln share buyback

Overview

• Global cruise operator's Q1 revenue slightly beat analyst expectations, adjusted EPS beat consensus

• Adjusted net income and adjusted EBITDA for Q1 exceeded analyst estimates

• Company announced initial $2.5 bln share buyback program

Outlook

• Carnival expects 2026 adjusted EPS of $2.21 and adjusted net income of $3.07 bln

• Company raises 2026 operational outlook by nearly $150 mln

Result Drivers

• STRONG DEMAND AND BOOKINGS - Co said record revenues and net yields were driven by strong close-in demand and historically high booking prices

• COST DISCIPLINE - Co said continued cost discipline and reduced fuel consumption per ALBD helped mitigate impact of higher fuel prices

• ONBOARD REVENUE GROWTH - Co said higher onboard revenues and acceleration in pre-cruise onboard sales reflected continued demand strength

Company press release: ID:nPn1Y2zGfa

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 $36.00, about 42.4% above its March 26 closing price of $25.28

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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