Zacks Investment Research downgraded shares of Carnival Corp. (CCL) from NEUTRAL to UNDERPERFORM on April 16, 2013, with a target price of $30.00.
We downgrade our recommendation on Carnival from Neutral to Underperform. Although Carnival's first-quarter fiscal 2013 adjusted earnings of $0.08 per share beat the Zacks Consensus Estimate by 100%, its revenues missed the same. Moreover, Carnival is facing one ordeal after another lately. After the grounding of its ship Costa Concordia in Italy in Jan 2012, the engine of its Triumph cruise ship caught fire in Feb 2013, which hurt the company's fiscal 2013 guidance. Even though the company is recovering at a slow but steady pace from the Costa Concordia grounding disaster, it continues to be cause of concern for the company. A sluggish European economy and lower consumer confidence in both North America and Europe threaten bookings. Lower bookings along with higher costs compelled Carnival to trim its earnings guidance for fiscal 2013 sharply.
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