RCL

Royal Caribbean Cruises Ltd. RCL is scheduled to report third-quarter 2026 results on Oct. 27, before the opening bell. RCL's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, and missed on one occasion with an average surprise of 4.9%. The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $6.38, indicating a rise of 11% from $5.75 reported in the year-ago quarter. Royal Caribbean Cruises Ltd. price-eps-surprise | Royal Caribbean Cruises Ltd. Quote For revenues, the consensus mark is pegged at nearly $5.59 billion. The metric suggests a rise of 8.7% from the year-ago quarter's figure. Let's take a look at how things have shaped up in the quarter. Top Line: Royal Caribbean's third-quarter revenues are likely to have benefited from robust demand for cruise vacations, increased capacity and sustained consumer spending on premium travel experiences. Strong booking volumes, record pricing and continued momentum in onboard spending and pre-cruise purchases are expected to have supported revenues. The company's differentiated fleet, private destinations and expanding loyalty programs likely contributed to guest engagement and spending. Our model estimates third-quarter passenger ticket revenues to rise 5.8% year over year to $3.8 billion. We expect onboard and other revenues to rise 14.9% year over year to $1.7 billion. However, prolonged geopolitical tensions in the Middle East are likely to have weighed on booking momentum and yield growth for select European itineraries, particularly Mediterranean sailings. Higher international air travel costs and consumers' preference for closer-to-home destinations may have further influenced booking patterns. Deployment mix, new-ship timing and dry-dock comparisons are expected to have created an approximately 200-basis-point headwind to third-quarter yields. Our model predicts third-quarter net yields at $301.7 (on a reported basis) and $300.5 (constant-currency basis). Margins: Royal Caribbean's third-quarter profitability is likely to have benefited from disciplined cost management, operational efficiencies and continued efforts to optimize spending. The company's focus on leveraging technology and artificial intelligence to improve productivity, alongside its expanding scale, is expected to have supported earnings growth. However, elevated fuel prices and the timing of operating expenses may have posed challenges. Certain costs that shifted from the first half into the second half of 2026 could have affected quarterly expenses. Our model projects third-quarter 2026 total cruise operating expenses to rise 10.4% year over year to $2.7 billion. Nonetheless, fuel hedging arrangements likely provided some protection against market volatility. Royal Caribbean expects third-quarter net cruise costs per available passenger cruise day, excluding fuel, to decline 1.1%-1.6% in constant currency. The company expects third-quarter adjusted EPS to be between $6.26 and $6.36. Our proven model predicts an earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Royal Caribbean's Earnings ESP: Royal Caribbean has an Earnings ESP of +0.13%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. RCL's Zacks Rank: The company currently has a Zacks Rank #3. Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these, too, have the right combination of elements to post an earnings beat. Marriott Vacations Worldwide Corporation VAC has an Earnings ESP of +10.02% and a Zacks Rank of 1 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Marriott Vacations is expected to register a 45% increase in earnings for the to-be-reported quarter. VAC reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 1.3%. Marriott International, Inc. MAR currently has an Earnings ESP of +3.43% and a Zacks Rank of 3. MAR's earnings for the to-be-reported quarter are expected to increase 15.4%. Marriott reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 2.5%. Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +2.44% and a Zacks Rank of 3. RSI's earnings for the to-be-reported quarter are expected to increase 55.6%. Rush Street Interactive reported better-than-expected earnings in the trailing two out of four quarters, missed estimates once and reported in line once, with the average surprise being 6.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Marriott International, Inc. (MAR) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Rush Street Interactive, Inc. (RSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Norwegian Cruise Line (NCLH) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This cruise operator is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of -24.2%. Revenues are expected to be $2.88 billion, down 2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 7.02% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Norwegian Cruise Line, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.73%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Norwegian Cruise Line will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Norwegian Cruise Line would post earnings of $0.39 per share when it actually produced earnings of $0.48, delivering a surprise of +23.08%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Norwegian Cruise Line appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Royal Caribbean (RCL), another stock in the Zacks Leisure and Recreation Services industry, is expected to report earnings per share of $6.38 for the quarter ended September 2026. This estimate points to a year-over-year change of +11%. Revenues for the quarter are expected to be $5.59 billion, up 8.7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Royal Caribbean has been revised 0.9% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.13%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Royal Caribbean will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For questions about this article or underlying research, email [email protected]. Carnival Corporation (CCL) reported record revenue and net income for its fiscal third quarter, management said on its September 29, 2026 call. Alongside those records, the cruise company held $25.2 billion of debt and lease obligations at the end of August, nearly matching the $27.6 billion of revenue it took in over the past twelve months. While records are welcome, a business carrying almost a full year of sales in debt and leases gives investors a different metric to track. So is Carnival's debt at least getting smaller? Carnival Has Cut Its Debt Three Years Running Yes, and the reduction has been steady. Carnival held $32.6 billion in total debt and lease obligations at the end of August 2023, and that balance was lower at the end of each August since. Management said on the call that total debt, excluding leases, has fallen below $24 billion, compared to a peak of $36 billion in 2023. During the fiscal third quarter, Carnival used cash on hand to redeem $500 million of 7% notes, which management called among its highest-cost debt. These cuts have not closed the gap with the broader market. Carnival's $25.2 billion of debt and leases equals 68.2% of its market value, against 19.7% for the S&P 500. One worrying number matters most when Carnival Corporation is a large share of what you own. See how to protect a concentrated position. What Carnival's Debt Means For Shareholders Carrying this debt means Carnival must divide its cash three ways: among lenders, ships, and the shareholders themselves. Management said spending on its existing fleet, outside new ships, is $2.4 billion for 2026, and the company expects those costs to run somewhat higher for the next few years. For fiscal 2026, Carnival also expects to return nearly $2 billion to shareholders through buybacks and its dividend. Management said Carnival expects to earn enough to invest in the business, lower its debt and return capital at the same time. The share price likely reflects some of that risk already. Carnival trades at 11.8 times earnings, against 23.0 for the S&P 500. Historically, the stock has also experienced steeper declines than the index during past market shocks. Amid the 2022 inflation shock, Carnival dropped 70% from peak to low, while the S&P 500 fell 24%. Carnival Is Already Half Booked For 2027 On the call, management said 2027 is already half booked, with both occupancy and pricing reaching record levels. Customer deposits, the money guests pay before they sail, reached a third-quarter record of about $7.6 billion, up about 7%, management said. Meanwhile, Carnival's free cash flow, the cash remaining after ship expenditures, rose to $3.18 billion over the past twelve months from $2.91 billion a year earlier. Bookings did encounter a challenge. Management said booking disruptions earlier in 2026 weighed heavily on bookings for the first quarter of 2027, though it added that those bookings have rebounded meaningfully over the past three months. This positions the debt as a risk to monitor rather than an alarm: the balance is shrinking, and bookings for 2027 are strong so far. A slower pace of repayment while fleet spending rises would make it more worrying. Carnival's total debt is the figure to watch when the company reports its fiscal fourth quarter, expected on or around December 18, 2026. Is Too Much Of Your Wealth Riding On One Stock? One number was enough to change how Carnival Corporation looks to its holders. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax. Request A Free Strategy Review Spot an error or want more like this? Tell us in 10 seconds.

Royal Caribbean (RCL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This cruise operator is expected to post quarterly earnings of $6.37 per share in its upcoming report, which represents a year-over-year change of +10.8%. Revenues are expected to be $5.59 billion, up 8.7% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Royal Caribbean, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.20%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Royal Caribbean will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Royal Caribbean would post earnings of $3.97 per share when it actually produced earnings of $4.21, delivering a surprise of +6.05%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Royal Caribbean appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Royal Caribbean (RCL), which belongs to the Zacks Leisure and Recreation Services industry. This cruise operator has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 9.27%. For the most recent quarter, Royal Caribbean was expected to post earnings of $3.97 per share, but it reported $4.21 per share instead, representing a surprise of 6.05%. For the previous quarter, the consensus estimate was $3.2 per share, while it actually produced $3.6 per share, a surprise of 12.50%. Thanks in part to this history, there has been a favorable change in earnings estimates for Royal Caribbean lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Royal Caribbean has an Earnings ESP of +0.20% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on October 27, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investing.com -- Cruise line stocks are positioned for improved performance as the sector prepares to report third-quarter 2026 earnings, according to Melius analyst Conor Cunningham. After a challenging year marked by elevated Caribbean supply and disruptions from the Iran war, the industry appears ready to turn a corner. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » In a note to clients dated October 12, 2026, Cunningham outlined a more favorable setup for cruise operators heading into earnings season. The analyst noted that 2026 has been a mixed year for the sector, with headwinds stemming from both macro factors and self-inflicted challenges. However, consumers are moving back toward value-oriented travel options, which positions cruise lines to resume their long-term growth objective of taking market share from other traditional forms of travel. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Valuations have become more attractive, according to the analyst, with cruise company multiples down 2.1x from their August 2025 peak based on EV/EBITDA metrics. Despite the valuation compression, estimates have fallen only modestly year-to-date, down 5.5% in aggregate for 2026. Cunningham emphasized that the key for this earnings season is not necessarily positive revisions, but rather that downward revisions stop, particularly given the easier comparisons heading into 2027. For the third quarter, Melius expects traditional cruise operators to deliver modest beats driven by close-in demand and onboard spending that exceeds expectations. Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) has already guided ahead of expectations. For the fourth quarter, the firm anticipates that prior outlooks will be broadly reiterated despite higher fuel costs, reflecting strong underlying demand. 1. Royal Caribbean Cruises Ltd (NYSE:RCL) and Viking Holdings Ltd (NYSE:VIK) - Melius highlighted these two operators as particularly interesting opportunities. The analyst described both as best in class and noted they currently trade at a discount. Cunningham sees almost 4 points of sequential improvement at RCL from the third quarter to the fourth quarter, assuming fourth-quarter constant-currency net yields of 4.5%. If this projection proves accurate, cruise lines would return to a sizable spread between net yields and costs in 2027, supporting the long-term growth opportunity that remains intact for the sector. Original Article Melius sees cruise lines poised for calmer waters in 3Q26 earnings AIR Global sets first-ever dividend, $100M buyback amid business, cash strength Google demonstrates quantum computing breakthrough, cuts errors 40-fold

Carnival Corporation Ltd. CCL reported better-than-expected third-quarter fiscal 2026 results on Sept. 29, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate by 5.1% and 0.9%, respectively. Revenues increased year over year, while adjusted earnings remained flat. Shares of Carnival have gained 18.1% since the earnings release, following the better-than-expected results and an increase in fiscal 2026 adjusted earnings guidance. Carnival reported adjusted earnings per share (EPS) of $1.43, unchanged from the prior-year quarter, while revenues of $8.44 billion increased 3.5% year over year. Passenger ticket revenues rose 1.8%, while onboard and other revenues increased 6.7%. Constant-currency net yields grew 2.4%, supported by strong close-in demand and onboard spending. Adjusted EBITDA totaled $2.99 billion, unchanged year over year but $110 million above June guidance. Furthermore, Carnival raised its fiscal 2026 adjusted EPS guidance to $2.24 (compared with the prior expectation of $2.22) and expects adjusted EBITDA of approximately $7.14 billion (compared with the earlier projection of $7.11 billion). The company also increased its constant-currency net yield growth outlook to approximately 2.3%. (Read more: Carnival Q3 Earnings Beat Estimates on Record Revenues & Net Yields) Shares of Carnival have declined 14.4% year to date (YTD), underperforming the Zacks Leisure and Recreation Services industry, the broader Zacks Consumer Discretionary sector and the S&P 500 Index, as shown in the chart below. Image Source: Zacks Investment Research With record bookings, destination expansion and operating efficiencies supporting its outlook, does CCL offer further upside following its post-earnings rally? Let's assess whether investors should buy, sell or hold the stock. Approximately half of fiscal 2027 is already booked, with advance occupancy and pricing at record levels. Customer deposits reached a fiscal third-quarter record of $7.64 billion, increasing approximately 7% year over year despite broadly flat capacity over the next 12 months. Booking momentum extends into fiscal 2028, with occupancy and pricing ahead of the comparable prior-year position. Reservations are also being secured further ahead of departure. With fiscal 2027 capacity expected to increase 0.5% year over year, Carnival is focused on generating higher revenues and returns from its existing fleet through pricing, onboard spending and disciplined booking management. Celebration Key welcomed nearly 2.5 million guests during its first year and is expected to receive approximately 3.5 million in fiscal 2027 following the opening of its second pier. The number of ships calling at the destination is expected to rise to 31 from 26, with access expanding across additional Carnival brands. Carnival is also pairing Celebration Key with RelaxAway, Half Moon Cay on more itineraries. In fiscal 2027, 35% of Carnival Cruise Line's Caribbean capacity is expected to feature both destinations on the same cruise. These investments broaden its exclusive destination offering and support efforts to differentiate itineraries and increase returns from existing ships. Carnival's fuel consumption per available lower berth day has declined 26% since 2019, representing nearly $750 million in savings at the fuel prices used in September guidance. Sourcing initiatives, technology investments and operating efficiencies are also supporting cost discipline. Total debt declined to $23.91 billion at Aug. 31, 2026, from $26.64 billion at the end of fiscal 2025. During the quarter, Carnival redeemed $500 million of 7% notes and received an investment-grade rating from a second credit-rating agency, marking further progress in strengthening its financial position. Carnival repurchased approximately 45 million shares for nearly $1.2 billion and paid $618 million in year-to-date dividends. Repurchases and expected full-year dividend payments together represent nearly $2 billion in shareholder returns. The company continues to expect year-over-year improvement in its balance sheet and leverage metrics while funding business investments and returning capital to its shareholders. Although Carnival, Royal Caribbean Cruises Ltd. RCL and Norwegian Cruise Line Holdings Ltd. NCLH compete in the cruise industry, their growth priorities differ. Carnival emphasizes higher revenues and returns from its existing fleet through measured capacity growth, booking management and exclusive destinations. Royal Caribbean combines fleet expansion with new destination experiences, loyalty initiatives and digital engagement. Norwegian Cruise is working to rebuild demand and improve advance bookings through sharper marketing and a revised pricing approach at its Norwegian brand. Royal Caribbean reported encouraging fiscal 2027 booking trends and record pricing while projecting 6.6% capacity growth in fiscal 2026. Its expanding vacation offering and cross-brand loyalty programs support a strategy combining additional capacity with greater guest engagement. Norwegian Cruise faces a more challenging near-term revenue outlook, with advance bookings below its optimal level and constant-currency net yields expected to decline approximately 5% in 2026. Its "baseloading" approach establishes more competitive fares earlier to build reservations and reduce exposure to close-in discounting, while Great Stirrup Cay investments broaden its destination offering. Carnival stock is currently trading at a discount. CCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.41, well below the industry average of 15.92. Other industry players, such as Royal Caribbean and Norwegian Cruise, have P/E ratios of 14.42 and 10.49, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CCL's fiscal 2026 and 2027 earnings implies a year-over-year uptick of 0.4% and 13.2%, respectively. The EPS estimates for fiscal 2026 have increased in the past 30 days. Image Source: Zacks Investment Research Fuel costs remain a significant earnings headwind. In the fiscal third quarter, fuel expense increased to $615 million from $451 million a year earlier, while fuel cost per metric ton consumed, excluding emission allowances, rose to $826 from $607. Higher fuel prices reduced the updated full-year earnings outlook by 11 cents per share relative to June assumptions, absorbing much of the benefit from stronger operations. Carnival continues to favor lower fuel consumption over financial hedging, leaving profitability exposed to price swings. The fiscal 2027 booking outlook is expected to vary across quarters. Record booked occupancy and pricing are concentrated in the second through fourth quarters. Although first-quarter fiscal 2027 bookings have recovered meaningfully, Carnival expects residual effects from the spring booking disruption to affect those sailings. Competitive capacity additions in the Caribbean present another challenge. Carnival acknowledged that the region faces pressure from substantial industry supply growth. Meanwhile, its new loyalty program creates temporary revenue-recognition headwinds. The program is expected to be cash-flow positive from launch, but revenue deferrals are expected to reduce fourth-quarter fiscal 2026 yields by 0.6 percentage points, with an additional 0.4-point impact for fiscal 2027. Carnival's record advance bookings, strong pricing and expanding private destinations support a constructive fundamental outlook. Higher fiscal 2026 guidance, upward earnings estimate revisions, continued debt reduction and a valuation discount to the industry further strengthen its investment appeal. However, CCL's 18.1% post-earnings rally warrants a measured approach to new positions. Elevated fuel costs, residual booking pressure on early-2027 sailings and substantial Caribbean capacity additions likely temper the near-term earnings outlook. Against this backdrop, existing shareholders may prefer to retain this Zacks Rank #3 (Hold) stock, while new investors could wait for a more attractive entry point. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With a market cap of about $74.9 billion, Florida-based Royal Caribbean Cruises Ltd. (RCL) operates some of the world's best-known cruise brands, including Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises. The cruise operator is expected to report its fiscal third-quarter earnings for 2026 in the near future. Wall Street is heading into the report with an upbeat outlook. Analysts expect RCL to post a profit of $6.36 per share, representing a 10.6% increase from $5.75 per share in the year-ago quarter. The company has topped consensus estimates in three of the past four quarters and missed the forecast just once. - A $40 Billion Reason Why SPCX Stock Is Down Today - Why This Wall Street Analyst Just Issued a Bold Prediction for Nebius Stock - Why Investors Are Celebrating Qualcomm Striking a Licensing Deal with Huawei — Which Is Still on the Entity List - Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! The growth story is expected to continue beyond the upcoming quarter. Analysts project fiscal 2026 EPS of $17.79, up 13.8% from $15.64 in fiscal 2025, while fiscal 2027 earnings are expected to climb another 13% to $20.11 per share. RCL stock has underperformed the S&P 500 Index's ($SPX) 16.2% gains over the past 52 weeks, with shares up 10.3% during this period. However, it has outperformed the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 5.5% fall over the same time frame. RCL shares popped 7.5% on Sept. 29, after Deutsche Bank analyst Chris Woronka upgraded Royal Caribbean to "Buy" and set a $299 price target, arguing that the stock's recent selloff has been overdone and that shares could now move higher. RCL has fallen more than 20% from its early-August peak, pressured by concerns over higher oil prices and potential weakness in cruise demand. However, Woronka believes those fears are overstated, noting that fuel represents only about 7% of revenue, while strong results from rivals suggest cruise operators can pass higher fuel costs on to customers amid resilient demand. Investor sentiment around RCL remains firmly positive, with the analyst consensus carrying a "Strong Buy" rating. Of the 26 analysts covering the stock, 19 rate it a "Strong Buy," one recommends a "Moderate Buy," and six give a "Hold" rating. The optimism is reflected in the average price target of $351.65, which implies roughly 24.6% upside from current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com