Traders Cheer Carnival's (CCL) 'Beat and Raise' Q3 Report
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Price: $27.67 -0.22%
Revenue Growth %: +4.1%
Financial Fact:
Onboard and other: 1.15B
Today's EPS Names:
MTEX, NSYS, PLNH, More
Revenue Growth %: +4.1%
Financial Fact:
Onboard and other: 1.15B
Today's EPS Names:
MTEX, NSYS, PLNH, More
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Carnival Corp. (NYSE: CCL) posted better-than-expected results for the fiscal third-quarter on Tuesday, as demand led to a 22 percent increase in the company’s quarterly net profit and an improved forecast for the full year.
The cruise ship operator reported quarterly earnings of $1.3 billion or $1.62 per share, up from $1.07 billion or $1.33 per share earned during the same quarter last year.
Revenue for the company rose 7 percent to $4.43 billion in the three month period ended August 31, marking the third consecutive quarterly increase.
On average, analysts had been looking for more modest earnings of $1.47 per share from Carnival in the quarter on revenue of $4.42 billion.
"Despite ongoing economic concerns, cruise ticket prices remained strong close to sailing rewarding consumers that booked early,” Carnival Chairman and CEO Micky Arison, said. “We enjoyed robust demand across all products during our seasonally strong summer period. Our North American brands experienced a significant rebound in peak season revenue yields, increasing more than 10 percent over weak 2009 comparisons. At the same time, our ongoing cost control efforts continued to bear fruit as we drove down operating, selling and administrative costs globally."
Looking forward, Carnival sees fourth-quarter earnings in the range of 32 cents to 36 cents per share, compared to the Street’s view of 36 cents per share.
For the full year, the company raised its guidance for earnings to a range of $2.48 to $2.52 per share from a prior view of $2.25 to $2.35 per share, compared to the consensus of $2.36 per share.
"We remain positive on cruise industry fundamentals and believe that all of the key buckets for Carnival outperformance are trending in the right direction," said JPMorgan analyst Kevin Milota, who added that the company received a boost from cost cutting.
JPMorgan reiterated an Overweight rating on Carnival.
Shares of Carnival are up 38 cents to $37.44 today.
The cruise ship operator reported quarterly earnings of $1.3 billion or $1.62 per share, up from $1.07 billion or $1.33 per share earned during the same quarter last year.
Revenue for the company rose 7 percent to $4.43 billion in the three month period ended August 31, marking the third consecutive quarterly increase.
On average, analysts had been looking for more modest earnings of $1.47 per share from Carnival in the quarter on revenue of $4.42 billion.
"Despite ongoing economic concerns, cruise ticket prices remained strong close to sailing rewarding consumers that booked early,” Carnival Chairman and CEO Micky Arison, said. “We enjoyed robust demand across all products during our seasonally strong summer period. Our North American brands experienced a significant rebound in peak season revenue yields, increasing more than 10 percent over weak 2009 comparisons. At the same time, our ongoing cost control efforts continued to bear fruit as we drove down operating, selling and administrative costs globally."
Looking forward, Carnival sees fourth-quarter earnings in the range of 32 cents to 36 cents per share, compared to the Street’s view of 36 cents per share.
For the full year, the company raised its guidance for earnings to a range of $2.48 to $2.52 per share from a prior view of $2.25 to $2.35 per share, compared to the consensus of $2.36 per share.
"We remain positive on cruise industry fundamentals and believe that all of the key buckets for Carnival outperformance are trending in the right direction," said JPMorgan analyst Kevin Milota, who added that the company received a boost from cost cutting.
JPMorgan reiterated an Overweight rating on Carnival.
Shares of Carnival are up 38 cents to $37.44 today.
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