What's Going On With Carnival? Why Shares Are Popping Before Earnings

Carnival Corp (NYSE:CCL) shares are trading higher Thursday afternoon, potentially lifted by positive sector sentiment following rival Royal Caribbean's announcement of a $2 billion share repurchase program.

Here’s what investors need to know.

• Carnival stock is showing exceptional strength. Why is CCL stock up today?

What To Know: The cruise sector is also benefiting from the Federal Reserve's Wednesday decision to cut interest rates by 25 basis points to a range of 3.5%-3.75%, reducing borrowing costs for capital-intensive operators.

This rally comes just ahead of Carnival's fourth-quarter earnings report, scheduled for Dec. 19. Analysts estimate the company will report EPS of 24 cents on quarterly revenue of $6.37 billion.

In its record-breaking third-quarter report released in September, Carnival raised its full-year 2025 outlook for the third time, projecting adjusted EBITDA of approximately $7.05 billion. At the time, CEO Josh Weinstein noted booking momentum was outpacing capacity growth, with nearly half of 2026 already booked at historically high prices.

While Royal Caribbean focuses on buybacks, Carnival has prioritized strengthening its financial fortress through deleveraging. Management recently announced the redemption of convertible notes, aiming to improve its net debt-to-EBITDA ratio to 3.5x by early 2026.

Wall Street remains cautiously optimistic. On Dec. 1, Wells Fargo maintained its Overweight rating on Carnival but lowered the price target from $37 to $34.

Investors will look to the upcoming print to see if holiday demand sustains the industry's upward trajectory.

Benzinga Edge Rankings: Data from Benzinga Edge further highlights the stock’s fundamental appeal, revealing a robust Value score of 71.54 that significantly outperforms its Momentum (46.54) and Growth (46.44) ratings.

CCL Price Action: Carnival shares were up 5.97% at $27.86 at the time of publication on Thursday, according to Benzinga Pro data.

This upward movement places the stock approximately 2.3% above its 50-day moving average of $27.33 and 9% above its 200-day moving average of $25.65, indicating a strong bullish trend in the short to medium term.

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