Carnival posts a record $8.44 billion quarter, blowing past estimates,

Summary

Carnival reported quarterly earnings and revenue above expectations, with record revenue of $8.44 billion and strong forward bookings and pricing. The hosts highlighted the stock's roughly 12% rise, recent unusual options activity, and the results as evidence of resilient consumer spending despite fuel costs.

• Q3 earnings were $1.43 per share versus $1.35 expected.
• Quarterly revenue reached a record $8.44 billion, exceeding estimates.
• Bookings extend into 2027, with pricing at record levels.
• Shares rose roughly 12% to their highest levels since June.
• The hosts cited options buying with shares near $22 the prior day; the stock traded above $25 after earnings.
• Unusual options activity was reported across multiple days.
• The hosts viewed Carnival's results as stronger evidence of consumer resilience than sentiment surveys.
• Strong results and forward demand came despite fuel-cost pressures.

1. 0:00

   Carnival Cruise Lines, CCL.

2. 0:03

   >> Yeah.

3. 0:03

   >> So, Carnival Cruise Lines, folks, up today. Um, early on it was up big. And why was that? Well, they beat um and uh basically eased some thoughts that, oh, maybe consumers aren't out there spending. Yes, they are.

4. 0:20

   I don't know how many times we got to tell you that, folks. But, you know, you can go with some University of Michigan sentiment survey. Hell, they can't even beat Iowa. But the University of Michigan has a has a sentiment survey that, you know, they pull a bunch of who knows who these people are that answer

5. 0:39

   this poll. Um, but do you would you rather have that or would you rather see, oh, let me see. Uh, a bunch of people are signing up for Carnival Cruise Lines and Carnival is still making money. H, maybe that means people aren't afraid and they're out there.

6. 0:56

   that means the consumer confidence might be better. Well, uh that's what I saw when I saw CCLP and we had unusual option activity. Multiple days, folks.

7. 1:08

   Multiple days of unusual option activity. Here's just one example. Um yesterday they were buying with the stock at 22. Well, the stock traded through 25 today. You think you can make money on a $3 pop on an option, which is

8. 1:24

   a derivative of course that uh uh gives you leverage. Well, my answer is if you don't know, you should be out at circa with us because we can show you, right, Pete? We could show them at the pool, John. WE CAN SHOW THEM WHATEVER THEY [laughter] WANT. YEAH. You know, it's amazing because this this really has been something where we got a couple of

9. 1:44

   hits yesterday, couple of hits today.

10. 1:46

    We've got, you know, Carnival crews making a really big move and that's in the face of something that you were just talking about a minute ago because a lot of people would say, well, you know, fuel's a pretty big deal for these guys, right? I mean, they they they have to deal with that, too. Well, apparently they're dealing with that pretty well, John, because when you look at their Q3

11. 2:04

    earnings, uh, they beat the expected numbers of a buck 35. They put up buck 43. Revenue was another beat. So, that was strong. It was almost eight.5 billion dollars of revenue. the guidance, the booking, all of those different things. And they go all the way out to 2027 with the bookings and

12. 2:22

    the pricing at record levels, John. So, they didn't just deliver in the past, like we talk about often times, the earnings themselves. Um, they're talking about the future and and the resiliency of what they were able to do despite the fact that they had the fuel costs that

13. 2:39

    they did. So really really kudos to the Carnival Cruise G gang up 12 13% somewhere close to that. I'm showing 12% right now John. It's at the highest levels it was since back in June. So a nice move to the upside for Carnival Cruise.

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