Shares of Carnival Corporation (CCL) are trading higher on Tuesday after the cruise line operator posted its fiscal second-quarter earnings results. The results revealed a resilient demand for its services, as revenue increased 18% year over year. In addition, the company raised its full-year adjusted EBITDA forecast.

Market Domination Anchors Julie Hyman and Josh Lipton break down Carnival's earnings figures and what it signifies for the full-year consumer travel demand.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino and updated by Luke Carberry Mogan.

Video Transcript

Carnival shares.

Moving to the upside being on the top and bottom line also raising its full year guidance.

You're looking gains of nearly 4% here.

The call expected to get underway in just about 30 minutes from now.

But here going through what this report exactly shows in terms of demand, demand remaining extremely resilient.

You've got revenue up 18% on a year over year basis.

When you take a look at occupancy, that's 100 and 4% beating what the streets expectations were.

When you look at passengers carried, that was 3.3 million up 10% from a year ago, also surpassing the streets expectations.

And when you take a look at those booking numbers here, the fact that we are seeing such demand, not only for its most recent quarter, but looking out of the fiscal third quarter, obviously, the street very encouraged by some of the guidance numbers that we're getting out this morning too.

I'm just sitting here and Sean and I mean, this company kept us on the edge of our ergonomic chairs coming into the start of today's show.

We didn't know what time it was gonna drop uh but we knew it had to come out by 10 a.m. because that's when the call starts.

But ultimately here, one of the things that kind of jumped out to me within this release, the company is saying based on continued strong demand trends, they're taking up their expectations for the year with net yields now forecasted to top 10% propelling them towards double digit returns on invested capital, their upwardly revised guidance.

They're gonna be on average about two thirds of the way to achieving their 3 2026 sea change targets after just one year.

So this is considerably noteworthy and they think it gives them even more conviction in achieving some of those deliverables there that coming from uh the the company's executives who were expected to give even more commentary on the call.

But that specifically was from their chief executive officer Josh Weinstein also here just thinking about the net income 92 million dollars in this most recent quarter.

So that is an increase of nearly $500 million compared to 2023 here.

When you think back to the losses that some of these cruise line operators were having to navigate through really choppy waters.

I I had to throw in a pun somewhere, of course, you know, and when you take a look at some of their competitors as well, because take a look at that when you uh the the gains that we're seeing almost across the board on the heels of these results uh from carnival, you'll get Royal Caribbean up just over 1% in a region, up just around 2.5%.

And we have seen strength across the board when it comes to bookings when it comes to demand.

And I also think the question coming out of the pandemic was not only whether or not these cruise liners were going to be able to win back the business, those loyal cruisers that we saw here, Pre Panem, but also what they were going to do in order to win that, that new business, those that hadn't taken cruises before, when you take a look at these results and compare them to the numbers that we saw Pre Panem, they clearly have surpassed.