Truist says ‘sell on the news’ after Carnival reported Q2 earnings

Truist analyst Patrick Scholes says that as expected, Carnival’s Q2 earnings results came in better than expected, though not a “blow-out” quarter. Unlike Q1 when guide disappointed, Carnival is organically raising the second half of the year expectations. While Q3 guide is roughly in-line with consensus, implications are that Q4 implied guide is well ahead of the Street. Good news aside, the stock is up nearly 70% since they last reported in March and Truist suspects Q2 results will make it difficult for the stock to outperform today. The firm will call it “sell on the news” today. Truist has a Sell rating on the shares with a price target of $11.