Carnival (NYSE:CCL) stock is rising higher on Friday following the release of its Q2 earnings report.
Specifically, the big news today is revenue of $2.4 billion for the period. Although that comes in below the $2.61 billion Wall Street had expected, investors are still excited about it.
That might seem strange at first. However, Carnival’s revenue increased 50% compared to Q1 2022. This sharp spike in revenue growth appears to be renewing faith in CCL stock today.
Of course, there have been some concerns about how the cruise market will perform these summer months. Cruise stocks’ road to recovery from the pandemic has been rockier than expected. Earlier this week, one analyst even warned that CCL stock may not have reached its lowest price yet.
So, while the company’s revenue didn’t beat estimates, the fact it rose as much as it did means investors could see more gains in the upcoming quarter.
President and CEO Arnold Donald noted that strong customer demand is behind the revenue increase.
“It is reinforcing to see continued strength in demand with our guests overcoming far more restrictive protocols than broader society and travel at large, leading to a near doubling of booking volumes since last quarter with near-term bookings even outpacing 2019. We were encouraged by close-in demand and remain focused on optimizing occupancy while preserving long term pricing.”
CCL stock is seeing heavy trading today with some 58 million shares on the move as of this writing. That’s already above its daily average trading volume of about 40 million shares.
CCL stock is up 11% as of Friday afternoon.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.