Carnival Sailing the High Seas on Earnings and Guidance
Carnival Corp. released its earnings for its third quarter Tuesday before the markets opened.
Carnival Corp. (NYSE: CCL) released its earnings for its third quarter Tuesday before the markets opened. This cruise liner giant posted solid seasonal gains for this quarter and is looking to move up its estimates on the year. This strong third quarter was the result of increased bookings throughout the 2014 year, which demonstrated an overall improvement in consumer demand and pricing.
The company reported its earnings at $1.58 per share and $4.95 billion in revenue. Thomson Reuters has estimates of $1.44 in earnings per share and $4.93 billion in revenues. Carnival released guidance for the 2014 fiscal year. The company expects the earnings per share to be in the range of $1.84 to $1.88. The consensus estimates for the year are $1.75 in earnings per share and $15.98 billion in revenue.
Looking forward, Carnival CEO, Arnold Donald had mentioned that another way that Carnival was sustaining its revenues was by investing in technology. He had this to say:
Our implementation of the air emissions technology is a sound investment in our company’s future and more importantly it will benefit the environment for years to come. These technology investments are laying a solid foundation towards sustainable earnings improvement. Combined with our other strategic initiatives designed to foster revenue growth and contain costs, we are gaining momentum towards our goal of achieving double digit returns on investment over time.
The reaction that Carnival has received was positive in the first hour of trading, and it was trading up 1.5% to $40.95 after 45 minutes since the open. The company has a consensus price target of $42.75 and a 52-week trading range of $31.44 to $42.31. It has a market cap of roughly $31 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
