Carnival Earnings: What To Look For From CCL

Cruise ship company Carnival (NYSE:CCL) will be announcing earnings results this Tuesday before market open. Here’s what to look for.

Carnival beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $5.81 billion, up 7.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 24.3 million passenger cruise days, up 3.4% year on year.

Is Carnival a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Carnival’s revenue to grow 7.6% year on year to $6.22 billion, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Carnival has missed Wall Street’s revenue estimates three times over the last two years.

With Carnival being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for consumer discretionary stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Carnival’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $28.55 (compared to the current share price of $23.82).

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