Carnival shares pop on earnings beat and raised full-year outlook

• Carnival reported strong second-quarter results, with record profitability and demand.
• Net income sharply improved year-over-year, the company said.
• The cruise line also raised its full-year guidance on continued booking strength.

Carnival shares climbed roughly 7% on Tuesday after the cruise line posted stronger-than-expected second-quarter results and raised its full-year guidance.

According to the company's earnings report, the cruise operator posted adjusted earnings of 35 cents per share while beating analyst estimates of 24 cents, according to LSEG. Adjusted revenue came in at at record $6.3 billion compared with the expected $6.2 billion.

Net income rose to $565 million, which was a significant increase from $92 million a year ago.

CEO Josh Weinstein said on Tuesday's earnings call with analysts that there was a “strong momentum” across all of the company's brands.

Due to outperformance, Carnival raised its full-year guidance and said it now expects adjusted net income to be 40% higher than 2024, which is about $200 million more than its March forecast.

Meanwhile, the cruise line said it expects full-year adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, to be $6.9 billion, up from a prior estimate of $6.7 billion.

Weinstein noted in the earnings call it is less than a month away from the of opening the island Celebration Key in the Bahamas. Carnival's island is expected to open on July 19.