Carnival Corp shares fell almost 6% on Tuesday after the cruise operator issued a third quarter profit outlook below Wall Street expectations, overshadowing stronger-than-expected second-quarter results and record revenue. The company reported adjusted earnings of $0.41 per share for the quarter ended May 31, ahead of analysts' estimates of $0.33 per share, while revenue rose to a record $6.7 billion, slightly above the consensus forecast of $6.68 billion. Net income attributable to Carnival reached $537 million, and adjusted net income climbed more than 20% year over year to a record $569 million, with adjusted EBITDA also hitting a record $1.6 billion. For the third quarter, Carnival expects adjusted earnings of $1.35 per share, below analysts' expectations of $1.42, and projected full-year 2026 adjusted earnings of $2.22 per share, also below the consensus $2.23. CEO Josh Weinstein noted that booking trends for Mediterranean itineraries were affected by the prolonged conflict in the Middle East, prompting the company to prioritize pricing over occupancy, though recent trends indicate a reversal of these headwinds.
Carnival CorporationQ3 profit outlook below consensus, overshadowing earnings beat and record revenue.