S&P 500 stock Carnival, already riding high as travel stocks rebound on hopes of an Israel-Iran ceasefire, powered higher after cruising past fiscal second-quarter earnings estimates. CCL, other cruise lines and airline stocks, including United Airlines, gapped higher early Tuesday.
A wider war in the Middle East could hurt, both by leading vacationers to scrap travel plans and by raising fuel costs. Oil futures prices fell 4.5% early Tuesday, following an 8.5% drop on Monday.
Carnival Earnings
"Even with the price increases we have achieved over the last few years, our tremendous value compared to land-based alternatives has supported our ability to continue demonstrating remarkable resilience amid heightened volatility," CEO Josh Weinstein said.
Results: Carnival posted Q2 adjusted earnings per share of 35 cents, a dime ahead of forecasts and more than triple the year-ago profit, according to FactSet.
Higher ticket prices and higher onboard spending by cruise passengers fueled the earnings beat.
Revenue grew 9.5% to $6.33 billion, surpassing expectations of 7.4% growth.
Outlook: Carnival raised its outlook for adjusted earnings before income, taxes, depreciation and amortization to $6.9 billion, up more than 10% from a year ago. FactSet shows estimates of $6.753 million and prior guidance of $6.7 billion.
Carnival said its advanced bookings for the rest of 2025 "remains strong with occupancy the second-highest on record and pricing (in constant currency) at historical highs." Bookings for 2026 are in line with record 2025 levels and at historical high prices.
S&P 500 Stock CCL
Carnival surged 9.5% to 26.33. The move carried CCL beyond the top of a buy zone from a cup-with-handle buy point. Royal Caribbean Group climbed 3.1% and Viking Holdings 3.4%. Both RCL and VIK also are cresting the top of a buy zone.
United Airlines rose 3.2% and Delta Air Lines 3.3%.
