Post-Earnings Analysis - Carnival

LONDON, September 26, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings analysis on Carnival Corp. (NYSE: CCL). The company reported its financial results for Q3 FY14 on September 23, 2014. During Q3 FY14, Carnival Corp.'s revenue increased 221 million, and its non-GAAP diluted EPS broadened by $0.20 from Q3 FY13. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

Carnival Corp.'s revenue for the reported quarter increased to $4,947 million, from $4,726 million in the prior year quarter. Analysts from Bloomberg were expecting the company to report revenue of $4,942 million during the reported quarter. On a constant dollar basis, the company's net revenue yields (net revenue per available lower berth day or ALBD) improved 1.8% Y-o-Y, better than the company's June guidance of flat to down 1%. Further, the company's gross revenue yields increased 2.5% Y-o-Y in current dollars. The free research on CCL can be downloaded as in PDF format at:

www.Investor-Edge.com/CCLFreeReport

During Q3 FY14, Carnival Corp. reported non-GAAP net income of $1,232 million, or $1.58 per diluted share compared to $1,073 million, or $1.38 per diluted share. The company's US GAAP net income during the reported quarter broadened to $1,247 million, or $1.60 per diluted share, from $934 million, or $1.20 per diluted share, in Q3 FY13. The reported quarter's GAAP net income outperformed Bloomberg analysts' forecasts of $1,140 million, or $1.46 per diluted share.

Arnold Donald, President and CEO of Carnival Corp., stated that the strong close-in demand and higher onboard spending helped the company drive significantly better than expected third quarter results and 15 percent year-over-year earnings improvement. He mentioned that Carnival Corp.'s Asia operations performed particularly well during the quarter, driven by a double-digit yield increase in the company's China program, further solidifying its industry leading presence in this important emerging cruise market. The company's continental European operations also enjoyed strong yield and profit improvement in the quarter, reflecting continued progress for the Costa brand. Mr. Donald added that Carnival Corp.'s summer Caribbean product successfully attracted nearly 20 percent more guests than the prior year, reinforcing the popularity of the world's largest cruising region. 

Mr. Donald further mentioned that the sustained improvement in booking trends as the company has progressed through the year combined with yield increases in the second half of 2014 builds confidence that the company will see continued yield growth in 2015 and beyond. He also noted that new product initiatives and innovative marketing campaigns implemented across the brands over the past year are driving the improvement in consumer demand and pricing trends. Sign up and read the free analyst's notes on CCL at:

www.Investor-Edge.com/CCL-26092014

The company has raised its expectations for full year FY14 net revenue yields on a constant dollar basis to be in line with the prior year, from its previous guidance of down slightly. Excluding fuel, the company expects FY14 net cruise costs per ALBD to be slightly higher compared to the prior year on a constant dollar basis. Taking the above factors into consideration, the company has increased its forecast for full year 2014 and expects non-GAAP diluted EPS to be in the range of $1.84 to $1.88, better than both June guidance of $1.60 to $1.75 and FY13 non-GAAP diluted EPS of $1.58. Further, in its outlook for Q4 FY14, the company expects non-GAAP diluted EPS to be in the range of $0.15 to $0.19 versus non-GAAP EPS of $0.04 in the previous year.

Stock Performance 

On the day of the earnings release, September 23, 2014, shares in Carnival Corp. edged 0.42% higher and ended the session at $40.51. After moving up 1.51% on the following day, the stock closed at an intra-day low of $40.46 on the last trading session, Thursday, September 25, 2014, which was 1.61% below its previous day's closing price. A total of 4.34 million shares were traded, above its three months average volume of 3.62 million shares. Over the previous three trading sessions and over the last one month, the company's shares have gained 0.30% and 7.04%, respectively. Moreover, the stock has advanced 0.72% from the beginning of 2014. Shares in Carnival Corp. are trading above their 50-day and 200-day moving averages of $37.81 and $38.62, respectively. Further, the stock traded at a PE ratio of 23.46 and has a Relative Strength Index (RSI) of 74.88. Visit Investor-Edge and access the latest research on CCL at:

www.Investor-Edge.com/CCLEarningsCoverage

In the last one month, Carnival Corp. has reported eight transactions by two insiders. On September 18 and 19, 2014, insider MA 1994 B. Shares Lp sold a total of 123,337 shares of the company for $4,960,990 at an average price of $40.22 per share. Further, on September 18 and 19, 2014, Mr. Micky M. Arison, Chairman of Carnival Corp., offloaded a total of 212,474 shares of the company for $8,546,353 at an average price of $40.22 per share. Complimentary in-depth research on CCL is available at:

www.Investor-Edge.com/CCLInsiderTrading

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