Darden Restaurants Inc. (NYSE: DRI) is set to report its fiscal fourth-quarter earnings Tuesday before the markets open. The consensus estimates from Thomson Reuters call for $0.93 in earnings per share (EPS) on $1.87 billion in revenue. The same period from the previous year saw $0.84 in EPS on $2.32 billion in revenue.

This is one of the largest casual dining restaurant operators worldwide, with operations in the United States and Canada and a total of 1,504 restaurants as of August 24, 2014. Darden operates restaurants under the Olive Garden, Longhorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s and Yard House brand names. Management returns much of its free cash to shareholders through share repurchases and dividends. With consumers having extra cash to spend as gasoline prices continue to stay low, the stock makes good sense for investors.

A couple of analysts weighed in on Darden ahead of its earnings:

• Credit Suisse upgraded the stock to an Outperform rating from Neutral and raised its price target to $77 from $69.
• Oppenheimer upgraded Darden to a Buy rating with a $75 price target.

Shares of Darden were up 0.6% at $69.27 on Monday afternoon. The stock has a consensus analyst price target of $69.68 and a 52-week trading range of $43.56 to $70.38.

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Carnival Corp. (NYSE: CCL) is scheduled to report its fiscal second-quarter earnings before the markets open Tuesday as well. The consensus estimates call for $0.16 in EPS on $3.56 billion in revenue. In the fiscal second-quarter of last year, the company posted EPS of $0.10 and revenue of $3.63 billion.

The company weathered the storm of currency headwinds through the first part of 2015. This was in fact reflected in its earnings and the market’s response.

Carnival gave guidance for its second fiscal quarter as an increase of 3.5% to 4.5% in revenues. There is a consensus estimate of $3.66 billion in revenue.

Carnival has ordered nine additional cruise ships as part of its fleet replacement program. Italian shipbuilder Fincantieri will take care of five of the cruise ships, and German shipbuilder Meyer Werft will build the other four. Among its various brands, Carnival now operates 101 ships.

Analysts weighed in on Carnival prior to its earnings:

• Deutsche Bank upgraded Carnival to Buy from Hold and raised its price target to $55.30 from $51.
• Susquehanna raised its price target to $56 from $55.

Shares of Carnival were up 1.8% at $49.78, in a 52-week trading range $43.56 to $70.38. The stock has a consensus analyst price target of $52.35.

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