Earnings Preview: Carnival Corporation

| About: Carnival Corporation (CCL)

Carnival Corporation (NYSE:CCL) operates as a cruise and vacation company worldwide.The company's cruise brand operates in two segments: North America and Europe, Australia & Asia (EAA). Carnival Corporation is scheduled to report its second quarter earnings results on June 22, 2012, before market open.

Technical Overview

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Carnival has a market cap of $28.49 billion and it is currently trading around $35.11 with a 52 week range of $28.52 to $38.83 . The stock has risen 7.57% year to date. The following table provides the key financial ratios for Carnival:

Key Ratio Value
Current Ratio 0.33
PEG 1.46
P/E 17.13
Forward P/E 15.47
Profit Margin 10.16%
Return On Assets (ROA) 4.21%
Return On Equity (ROE) 6.88%
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Recent News

  • On April 12, 2012, Carnival Corporation & plc announced a quarterly cash dividend of $0.25 per share. The dividend is payable on June 15, 2012, to shareholders of record on May 25, 2012.
  • On April 23, 2012, Carnival Corporation & plc and its subsidiary Costa Crociere announced that Pier Luigi Foschi will retire as the cruise operator's chief executive officer effective July 1, 2012.
  • On April 12, 2012, Carnival Corporation & plc announced that shareholders elected a new member to the company's board of directors - Debra Kelly-Ennis, president and chief executive officer of Diageo Canada, Inc. at the annual shareholders meeting of Carnival Corporation & plc. Kelly-Ennis will serve in a non-executive capacity on Carnival Corporation & plc's 14-member board and she will also serve on the board-level Health, Environmental, Safety and Security Committee.

Here's a list of recent changes to analyst ratings:

  • On May 7, 2012, Goldman Sachs downgraded Carnival Corporation from BUY to NEUTRAL and lowered their price target from $36 to $32.
  • On March 22, 2012, Longbow Research initiated coverage on Carnival with a NEUTRAL rating.
  • On March 12, 2012, Exane BNP Paribas upgraded Carnival Corporation from UNDERPERFORM to OUTPERFORM.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $3.55 billion when compared to $3.62 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 7 cents a share, down from a 26 cents a share in the year-ago period.

The average price target from analyst for Carnival is $34.75 with average rating is OVERWEIGHT.

Out of the last 4 quarters, Carnival has met or exceeded the EPS estimates all 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Carnival:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in CCL over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.