How did CUK's Q2 2024 earnings surprise investors?

Carnival Corp.'s (CUK) Q2 2024 earnings exceeded investor expectations in several key financial metrics, leading to a positive market reaction and a surge in the company's stock price: 1. **Earnings Per Share (EPS) Surprise**: The EPS for Q2 2024 was $0.12, which surprised investors by exceeding expectations. This was a significant positive indicator, as it reflected improved profitability for the period. |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code| |---|---|---|---|---|---|---| |CUK|CUK.N|Carnival|2024 Q1|-0.17|0.03|169| |CUK|CUK.N|Carnival|2024 Q2|-0.01|0.12|169| 2. **Net Income and Revenue**: Carnival reported a net income of $91 million and total revenue of $5.78 billion for the quarter. These figures were particularly noteworthy as they marked record-breaking performance for the company, surpassing analyst estimates of $5.67 billion. |code|Ticker|Name|Date|Total Revenue|Net Income|market_code| |---|---|---|---|---|---|---| |CUK|CUK.N|Carnival|2023 Q3|6.854E9|1.074E9|169| |CUK|CUK.N|Carnival|2023 Q4|5.396E9|-4.8E7|169| |CUK|CUK.N|Carnival|2024 Q1|5.406E9|-2.14E8|169| |CUK|CUK.N|Carnival|2024 Q2|5.781E9|9.1E7|169| 3. **Operating Income**: Carnival also achieved a record second-quarter operating income of $560 million, which was nearly five times the level of 2023. This demonstrated the company's improved operational efficiency and profitability. 4. **Stock Price Reaction**: Following the earnings release, Carnival's stock price surged by 8%, reflecting investor confidence in the company's performance and outlook. Analysts at Goldman Sachs maintained a 'Buy' rating on Carnival with a 12-month price target of $22 per share, implying a 34% increase. This positive analyst sentiment further bolstered investor optimism. In conclusion, Carnival's Q2 2024 earnings report showcased the company's strong recovery and growth, surpassing investor expectations in both net income and revenue. This performance, coupled with record-breaking operating income, contributed to a significant uptick in the company's stock price and reinforced positive market sentiment.