Carnival Corporation (NYSE:CCL) is a major player in the cruise industry, known for its extensive fleet and global reach. The company is set to release its quarterly earnings on March 21, 2025, with Wall Street analysts estimating an earnings per share (EPS) of $0.02 and projected revenue of approximately $5.74 billion.
Carnival's performance is expected to benefit from strong booking trends, fleet optimization, and expansions. In the previous quarter, Carnival exceeded the Zacks Consensus Estimate by 75%, showcasing its ability to outperform expectations. The Zacks Consensus Estimate for the upcoming quarter's EPS is 2 cents, indicating a significant year-over-year growth of 114.3%.
The revenue estimate of $5.74 billion reflects a 6.3% increase from the same quarter last year. Carnival has a strong track record of surpassing earnings expectations, having beaten the consensus mark in the last four quarters with an average surprise of 326.4%. This history of exceeding expectations could influence investor sentiment positively.
Carnival's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 14.28, indicating how the market values its earnings. The price-to-sales ratio stands at about 1.09, suggesting the amount investors are willing to pay per dollar of sales.
The enterprise value to sales ratio is 2.20, reflecting the company's valuation when considering its debt and cash. However, the debt-to-equity ratio is notably high at 3.12, indicating a significant reliance on debt financing. The current ratio of 0.29 may suggest potential liquidity challenges in meeting short-term obligations.
