- Carnival Corp. said its outlook assumes Brent crude will average about $90 per barrel for the rest of April and May.
- The company approved a $2.5 billion share buyback program, as part of a broader $14 billion package.
- Carnival Corp’s first-quarter revenue and income per share came above Street estimates.
Shares of Carnival Corp. (CCL) fell nearly 4% on Friday after the cruise operator cut its full-year 2026 profit outlook, stating that recent volatility in fuel prices could pressure margins.
The company forecast a net income of $3.07 billion for the full-year (FY) 2026, down from its earlier forecast of $3.45 billion. On a per-share basis, earnings estimates were slashed to $2.21 from $2.48. Wall Street had expected earnings of $2.51 per share, according to Fiscal.ai data.
Carnival Corp. said its outlook is based on fuel purchased in March and early April and assumes Brent crude will average about $90 per barrel for the rest of April and May, ease to $85 in the third quarter, and decline further to $80 in the fourth quarter.
Disruptions to energy shipments through the Strait of Hormuz, a route that carries about a fifth of the world’s oil, have tightened global supply and driven oil prices higher. Since the U.S.-Israel strikes on Iran began on February 28, Brent Crude Futures have surged more than 50%. It is currently trading 3% higher at $111 per barrel.
Better-Than-Expected Q1 Print
Revenue for the first-quarter rose 6% to $6.17 billion, beating Street estimates of $6.13 billion. Carnival Corp’s earnings of $0.19 per share also edged above consensus estimates of $0.18. Passenger ticket revenues rose 5%.
“Bookings for 2026 were up double digits, which further pulled forward our already record-booked position for the remainder of the year at historically high prices (in constant currency). With nearly 85% of 2026 already on the books and an even smaller amount of inventory available compared to this time last year, we are well-positioned to deliver yield improvement in the back half of the year,” said CEO Josh Weinstein.
The company also approved a new $2.5 billion share buyback program, as part of a broader strategy to deliver around $14 billion to shareholders through 2029.
How Did Retail Traders React?
Retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘neutral’ a day earlier, amid ‘extremely high’ message volumes.
One bullish user said the rising oil price is a “false fear” and will be a “non-factor” for the company.
However, another user enquired about the company’s forward guidance based on a $100-per-barrel fuel price.
Year-to-date, the stock has shed 21%.
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