Carnival Corporation (NYSE: $CCL) is the biggest global cruise company and among the biggest leisure travel companies worldwide. On Friday, March 21, 2025, before markets opened, it released its first quarter fiscal 2025 results.
Carnival Corporation Q1 Results
For the first quarter of fiscal 2025, Carnival Corporation reported record revenue of $5.8 billion, beating estimates of $5.75 billion. It reported an adjusted net income of $174 million for an adjusted EPS of $0.13, beating estimates of $0.02.
Carnival Corporation reported record net yields of $184.95 per ALBD (Available Lower Berth Days), a 7.3% increase from last year and significantly above the December guidance by 270 bps. It also reported gross margin yields (per ALBD) of $58.99, a 25% increase from the previous year.
Other Q1 Financial Highlights
The company reported total customer deposits hit a record $7.3 billion, surpassing the previous Q1 record set in Q1 fiscal 2024. It recorded an adjusted EBITDA of $1.2 billion, a 38% YoY increase, and outperformed December’s guidance by $165 million. Carnival Corporation reported better operating margins and adjusted EBITDA margins than the 2019 levels. This signals that the post-pandemic recovery has been a success.
Outlook
For FY25, Carnival Corporation expects net yield approximately 4.7% higher than 2024, and 0.5% better than the December guidance. It expects adjusted cruise costs excluding fuel per ALBD to be 3.8% higher compared to 2024, and in line with the previous guidance.
Adjusted net income is expected to rise 30% compared to 2024, and better than the previous guidance of $185 million. It expects an adjusted EBITDA of around $6.7 billion, up nearly 10% compared to 2024, and better than the previous guidance. For FY25, it expects an adjusted net income of $2.49 billion, and an adjusted EPS of $.183.
For the second quarter of fiscal 2025, it expects net yield to rise 4.4% compared to 2024 and adjusted cruise costs excluding fuel per ALBD to rise 5.5% compared to Q2 2024, driven by higher dry dock days.
The company expects an adjusted EBITDA of around $1.3 billion in Q225, a 10% YoY increase. It expects an adjusted net income of $285 million in Q2, with an adjusted EPS of $0.22.
CCL Market Performance
Following the Q1 results, Carnival Corporation dipped 4.25% in the early morning trading session to $20.30 per share as of 9:49 AM EDT. The stock is down 18.76% year to date, while over the past six months it has gained 6.55%. Meanwhile, the stock is up 18.95% over the past 12 months.
As of Friday morning, it was trading below its 50-day moving average of $24.17 and below its 200-day moving average of $20.91.
Analysts are cautiously optimistic about the future of CCL, giving it a moderate buy rating. They forecast an average price of $29.15, which is a 37.50% upside based on Thursday’s closing price. The analysts forecast a wide range of price targets, with a high of $32, and a low of $25.
Is CCL A Good Buy In 2025?
The near-term outlook for CCL looks bright. Customer deposits hit a record level for Q1, surpassing the previous record, and it reported record revenue. Additionally, its margins are improving, and earnings are growing. Consequently, CCL shares could potentially make some gains in the coming months, with the current point potentially being a great entry point.
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