Earnings Preview: Carnival Corp.

Carnival Corp. (CCL) is expected to report Q4 earnings before market open Thursday Dec. 18, with a conference call scheduled for 10:00 am ET.

Guidance

Analysts are looking for a profit of 40c on revenue of $3.33B. The consensus range is 36c-48c for EPS, and revenue of $3.19B-$3.50B, according to First Call. In October Carnival increased its FY08 EPS outlook to $2.81-$2.83 from $2.79-$2.81 vs. First Call consensus of $2.82. It forecast FY09 EPS of $3.25-$3.00 vs. First Call consensus of $2.64.

Analyst Views

As a result of the volatile financial markets, Carnival suspended its dividend in October and intends to pay none through 2009. While oil prices dropped enough for Carnival to suspend its cruise fuel surcharge, consumers have put off booking cruises due to the economy.

Stifel Nicolaus analyst Steven Wieczynski says revenue weakness should be partially offset by lower fuel prices, although the outlook for 2009 is currently "cloudy" because it's unclear how far bookings have deteriorated since October and whether that weakness will continue.

In order to increase bookings, Carnival's Holland America Line recently unveiled a new promotion that includes reduced deposits and discounted fares.