Earnings Preview: Carnival Corp.

Carnival Corp. (CCL) is expected to report Q3 earnings before the market open on Tuesday, September 22 with a conference call scheduled for 10 am ET.

Guidance

Analysts are looking for a profit of $1.18 on revenue of $4.05B. The consensus range is $1.09-$1.24 for EPS, and revenue of $3.26B-$4.3B, according to First Call. In June the company forecast Q3 EPS $1.15-$1.19 and cut its FY09 EPS view to $2.00-$2.10 from $2.10-$2.30 vs. First Call consensus of $2.08.

Analyst Views

Despite a FY09 EPS cut, William Blair analyst Sharon Zackfia expects the company to meet or beat Q3 estimates and boost its FY09 forecast due to steadying prices and easing comparisons. She believes the company will report lower net cruise costs based on cost control efforts and declining fuel costs. Zackfia believes Carival could raise its FY09 guidance to $2.10 from $2.00 due to improving Q1 bookings and a neutral effect from currency rates. At the same time, Goldman Sachs analyst Steven Kent believes cruise stocks will continue to be relative under performers. He said cruise operators are likely to under perform hotels, and that negatives for Carnival include higher oil prices and the possibility of an impact from the H1N1 flu virus .