Overview
- Carnival posted record fourth-quarter profit and cash flow, with adjusted EPS of $0.34 beating estimates by $0.09 and revenue reaching a Q4 record of $6.33 billion.
- The company reinstated its pandemic-suspended dividend, giving the shares a yield of about 1.9%.
- The stock rose about 10% after the results and gained another 3% Monday as at least six firms raised price targets, including Goldman Sachs to $34.
- Guidance calls for roughly $2.48 in adjusted EPS for full-year 2026 versus the $2.42 consensus, with Q1 2026 at $0.17 compared with a $0.18 estimate.
- Net yields exceeded Q4 guidance by about 110 basis points and same-ship pricing rose over 4% excluding Celebration Key, alleviating concerns about Caribbean pricing.