Carnival's Q3 Expectations: Revenue Up 2%, EPS Up 4%

Carnival Corporation's Q3 results are expected to show strong demand and revenue growth, with sales up 2% to $8.07 billion and EPS increasing 4% to $1.32 per share. Despite concerns about its debt load, Carnival's turnaround story has been captivating, with occupancy levels at 104% and lower rates helping with refinancing and reducing pandemic-era debt. The company's projected FY25 and FY26 sales growth of 6% and 4%, respectively, lags other cruise operators, but its FY25 EPS growth rate of 42% leads the Leisure and Recreation Services Industry and the S&P 500.

Carnival Corporation (CCL) is set to release its third-quarter fiscal 2025 earnings on September 29, 2025, with analysts expecting robust performance. The company is projected to report a 4% increase in earnings per share (EPS) to $1.32, up from $1.27 in the prior-year quarter Carnival Stock Before Q3 Earnings: Buy Now or Wait for Results?^[2]. Revenue is anticipated to reach $8.07 billion, a 2% increase from the previous year Carnival Stock Before Q3 Earnings: Buy Now or Wait for Results?^[2].

Carnival's turnaround story has been compelling, with occupancy levels at 104% and lower rates contributing to refinancing and reducing pandemic-era debt. The company's projected FY25 and FY26 sales growth of 6% and 4%, respectively, may lag behind other cruise operators, but its FY25 EPS growth rate of 42% leads the Leisure and Recreation Services Industry and the S&P 500 Carnival Stock Before Q3 Earnings: Buy Now or Wait for Results?^[2].

The company's financial health is supported by a high Piotroski F-Score of 8, indicating a healthy financial situation, and a Beneish M-Score of -2.59, suggesting the company is unlikely to be manipulating its financial statements Carnival (CCL) Set for Strong Q3 with Record Earnings and Guidance Boost^[1]. However, concerns about its debt load remain, with a debt-to-equity ratio of 2.86 and a current ratio of 0.34, indicating potential liquidity constraints Carnival (CCL) Set for Strong Q3 with Record Earnings and Guidance Boost^[1].

Carnival's valuation metrics indicate a P/E ratio of 16.48, a P/S ratio of 1.63, and a P/B ratio of 3.99, all of which are near historical highs Carnival (CCL) Set for Strong Q3 with Record Earnings and Guidance Boost^[1]. Despite these metrics, analysts maintain a positive sentiment, with a target price of $33.50 and a recommendation score of 1.9, indicating a "Buy" consensus Carnival (CCL) Set for Strong Q3 with Record Earnings and Guidance Boost^[1].

Investors should also consider the stock's high volatility, with a beta of 3.38 and a volatility of 48.54%, which could lead to significant price fluctuations Carnival (CCL) Set for Strong Q3 with Record Earnings and Guidance Boost^[1]. However, the company's strategic initiatives, such as the launch of Celebration Key and fleet upgrades, are expected to drive incremental revenue and enhance guest experience Carnival Stock Before Q3 Earnings: Buy Now or Wait for Results?^[2].

In conclusion, Carnival Corporation is well-positioned heading into its fiscal third-quarter earnings, underpinned by resilient demand and strong performance. Despite concerns about its debt load, the company's turnaround story and strategic initiatives offer a compelling opportunity for long-term investors.