Carnival Corporation CCL operates as a cruise and vacation company. The company 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 been almost moving upwards. 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 56.99%. However, the company’s revenues have surpassed the estimates in two out of the trailing four quarters.
Currently, CCL has a Zacks Rank #3 (Hold) and have chances of remaining the same 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 41 cents per share, and the company reported EPS of 50 cents per share instead. Investors should note that these figures take out stock option expenses.
Revenues: CCL reported revenues of $3.711 billion. This marginally missed our consensus estimate of $3.718 billion.
Key Stats to Note: On a constant dollar basis, net revenue yields (net revenue per available lower berth day) increased 4.1%, which was better than the company's September guidance of up by 3%. Gross revenue yields decreased 2.5% in current dollars.
Net cruise costs, excluding fuel per ALBD, increased 3.2% in constant dollars, which was in line with September guidance.
For the fiscal first quarter of 2016, ending in March, Carnival expects its earnings to range from 28 cents to 32 cents per share.
The company expects full-year 2016 adjusted earnings per share to be in the range of $3.10 to $3.40, compared to 2015 adjusted earnings of $2.70 per share.
How the Market Reacted So Far
Shares of Carnival were up around 3% in the pre market trading session, before the earnings release. Following the earnings release, Carnival’s shares were still up by around 2% in the trading session. The initial reaction doesn’t show whether the investors have considered the results in their favor. However, the full-session’s price movement may give an indication.
Check back later for our full write up on this CCL earnings report later!
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