Carnival Corporation delivered its twelfth consecutive quarter of record net yields, yet the stock sold off after Q2 results, creating what analysts call a buying opportunity. The company posted adjusted earnings per share of $0.41 on revenue of $6.663 billion, beating its own March guidance by $100 million, while customer deposits hit a record $9 billion and 2026 sailings are already 93% booked. Despite the strong quarter, shares fell 4.87% after Q3 guidance came in below estimates due to roughly 30% higher fuel prices and a $73 million currency headwind, though CEO Josh Weinstein noted recent booking trends suggest a reversal of those pressures. A 24/7 Wall St. analysis sets a 12-month price target of $37.74, implying 31.41% upside from the current price of $28.72, with a buy recommendation and 90% confidence level. The bull case points to resilient demand, a $2.5 billion buyback, an investment-grade rating from Fitch, and the PROPEL plan targeting over 16% return on invested capital and more than 50% adjusted earnings per share growth by 2029, while risks include $24.9 billion in total debt and unhedged fuel exposure.
Carnival CorporationRecord Q2 earnings beat, record customer deposits, $2.5B buyback, and analyst price target implying 31% upside.
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