03:33 PM EDT, 09/24/2024 (MT Newswires) -- Carnival (CCL) is expected to experience an increase in its fiscal Q3, Q4, and 2025 earnings estimates due to the impact of lower fuel prices and interest rates, UBS said in an earnings preview emailed Tuesday.

The cruise operator is scheduled to release its fiscal Q3 results on Monday.

UBS expects adjusted earnings for the quarter of $1.15 per share. The company has projected $1.15, while the consensus is $1.16, according to the firm.

The firm said fiscal Q3 EPS could be higher by up to 2 cents than its estimate because of lower fuel prices alone.

UBS also said lower fuel prices could add 3 cents to 4 cents to fiscal Q4 EPS, and 13 cents to 14 cents to fiscal 2025 EPS. It currently estimates EPS of $0.08 for fiscal Q4 and $1.61 for fiscal 2025.

The brokerage said that among Carnival's outstanding debt balance of $30 billion, 22% is variable, and it anticipates every 100 basis points of interest rate cut could lower the company's annual interest expense by $60 million to $70 million or by 4 cents to 5 cents in earnings per share.

UBS has a buy rating on the company's stock with a price target of $21.

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