Carnival Corporation CCL is one of the largest cruise operators in the world and operates through three segments, North America cruise brands, EAA cruise brands and Cruise Support. Carnival has adopted a strategy to grow beyond its familiar itineraries and capitalize on Asian opportunities.
Strong marketing initiatives have been helping the company to keep its booking strong over the past few years at most of its itineraries, thereby resulting in improvement in revenue yields. Its consistent efforts to reduce fuel consumption have aided the company to generate profits.
Investors should also note the recent earnings estimate revisions for CCL, as the consensus estimate has remained stable. Moreover, CCL has a decent history in earnings season. Carnival Corp. has delivered positive earnings surprise for four quarters in a row, making for an average earnings surprise of just around 27.84%. However, the company’s revenues have surpassed the estimates in three out of the trailing four quarters.
Currently, CCL has a Zacks Rank #3 (Hold) but could change following Carnival Corp.’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: CCL beat on earnings. Our consensus earnings estimate called for EPS of 39 cents per share, and the company reported EPS of 49 cents per share instead. Investors should note that these figures take out stock option expenses.
Revenues: CCL reported revenues of $3.71 billion. This beat our consensus estimate of $3.66 billion.
Key Stats to Note: On a constant dollar basis, net revenue yields (net revenue per available lower berth day) increased 3.6%, which was better than the company's March’s guidance of up by 1.5% to 2.5%. Gross revenue yields decreased 1.3% in current dollars.
Net cruise costs, excluding fuel per ALBD, decreased 1.9% in constant dollars, which was higher than March guidance.
For the fiscal third quarter of 2016, Carnival expects its earnings to range from $1.83 to $1.87 per share.
The company has revised its full-year 2016 adjusted earnings expectation to $3.25-$3.35 per share, from the prior guidance of $3.20-$3.40 per share.
Share Price Impact: Shares of Carnival were up around 3.7% in the pre market trading session, before the earnings Check back later for our full write up on this CCL earnings report later!
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