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Carnival (CCL) Beats on Q4 Earnings, Issues FY17 Guidance
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Carnival Corporation (CCL - Free Report) reported strong fourth-quarter fiscal 2016 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The Miami-based cruise company’s adjusted earnings per share of 67 cents outpaced the Zacks Consensus Estimate of 58 cents by 15.5% and also surpassed the guided range of 55 cents to 59 cents. Further, earnings surged 34% year over year on the back of higher revenues. Quarterly earnings exclude net unrealized losses on fuel derivatives.
Total revenue increased over 6% year over year to $3.94 billion on the back of Carnival’s efforts to drive demand. Revenues also beat the Zacks Consensus Estimate of $3.92 billion by 0.5%.
Net revenue yields (in constant currency) increased 4.1% year over year, higher than the roughly 3% rise projected in Sep. However, gross revenue yields increased only 1.6%.
Segment Revenues
Carnival earns revenues from its Passenger Tickets business, Onboard and Other as well as Tour and Other segments.
Passenger Tickets: Passenger Tickets revenues increased 6.1% year over year to $2.87 billion.
Onboard and Other: Onboard and Other revenues were $1.02 billion, up 5.4% year over year.
Tour and Other: Revenues surged 24.2% year over year to $41 million.
Expenses
Net cruise costs (in constant dollar) per available lower berth day (ALBD) (fuel and impairments excluded) increased 1%, in-line with the September guidance. Gross cruise costs, including fuel per ALBD in current dollars, increased 0.2%.
Full-Year Fiscal 2016 Earnings
For 2016, earnings were $3.45 per share, up 27.8% year over year, and ahead of the Zacks Consensus Estimate of $3.36. Further, earnings per share exceeded the guidance range of $3.33 to $3.37.
Revenues were $16.39 billion, up 4.5% year over year and marginally higher than the consensus mark of $16.38 billion.
First-Quarter Fiscal 2017 View
Fiscal first-quarter 2017 net revenue yields in constant dollars are expected to increase roughly 1.5-2.5% year over year. Net cruise costs, excluding fuel per ALBD, are expected to grow 1.5-2.5% year over year on a constant dollar basis.
Based on the above factors, the company expects adjusted earnings per share in the range of 31 cents to 35 cents. Meanwhile, the Zacks Consensus Estimate for earnings stands at 42 cents per share.
Fiscal 2017 Guidance
The company expects full-year 2017 adjusted earnings per share in the range of $3.30 to $3.60.
Based on current booking trends, the company expects full-year 2017 net revenue yields in constant currency to be up approximately 2.5%.
Also, the company expects net cruise costs, excluding fuel per ALBD, on a constant currency basis, for full-year 2017 to be up nearly 1%.
Management noted that cumulative advance bookings for the first three quarters of next year are well ahead of the year-ago level at significantly higher prices.
Town Sports International Holdings, Inc. carries a Zacks Rank #2 (Buy) and has posted positive earnings surprise in three of the last four quarters, with an average beat of 17.93%.
The Marcus Corporation (MCS - Free Report) sports a Zacks Rank #1. Its long-term growth estimate stands at 15% while the industry’s average is 11%.
Reading International, Inc. (RDI - Free Report) is another Zacks Rank #1 company which posted a positive surprise of 1500% in the last reported quarter.
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Carnival (CCL) Beats on Q4 Earnings, Issues FY17 Guidance
Carnival Corporation (CCL - Free Report) reported strong fourth-quarter fiscal 2016 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The Miami-based cruise company’s adjusted earnings per share of 67 cents outpaced the Zacks Consensus Estimate of 58 cents by 15.5% and also surpassed the guided range of 55 cents to 59 cents. Further, earnings surged 34% year over year on the back of higher revenues. Quarterly earnings exclude net unrealized losses on fuel derivatives.
Total revenue increased over 6% year over year to $3.94 billion on the back of Carnival’s efforts to drive demand. Revenues also beat the Zacks Consensus Estimate of $3.92 billion by 0.5%.
Net revenue yields (in constant currency) increased 4.1% year over year, higher than the roughly 3% rise projected in Sep. However, gross revenue yields increased only 1.6%.
Segment Revenues
Carnival earns revenues from its Passenger Tickets business, Onboard and Other as well as Tour and Other segments.
Passenger Tickets: Passenger Tickets revenues increased 6.1% year over year to $2.87 billion.
Onboard and Other: Onboard and Other revenues were $1.02 billion, up 5.4% year over year.
Tour and Other: Revenues surged 24.2% year over year to $41 million.
Expenses
Net cruise costs (in constant dollar) per available lower berth day (ALBD) (fuel and impairments excluded) increased 1%, in-line with the September guidance. Gross cruise costs, including fuel per ALBD in current dollars, increased 0.2%.
Full-Year Fiscal 2016 Earnings
For 2016, earnings were $3.45 per share, up 27.8% year over year, and ahead of the Zacks Consensus Estimate of $3.36. Further, earnings per share exceeded the guidance range of $3.33 to $3.37.
Revenues were $16.39 billion, up 4.5% year over year and marginally higher than the consensus mark of $16.38 billion.
First-Quarter Fiscal 2017 View
Fiscal first-quarter 2017 net revenue yields in constant dollars are expected to increase roughly 1.5-2.5% year over year. Net cruise costs, excluding fuel per ALBD, are expected to grow 1.5-2.5% year over year on a constant dollar basis.
Based on the above factors, the company expects adjusted earnings per share in the range of 31 cents to 35 cents. Meanwhile, the Zacks Consensus Estimate for earnings stands at 42 cents per share.
Fiscal 2017 Guidance
The company expects full-year 2017 adjusted earnings per share in the range of $3.30 to $3.60.
Based on current booking trends, the company expects full-year 2017 net revenue yields in constant currency to be up approximately 2.5%.
Also, the company expects net cruise costs, excluding fuel per ALBD, on a constant currency basis, for full-year 2017 to be up nearly 1%.
Management noted that cumulative advance bookings for the first three quarters of next year are well ahead of the year-ago level at significantly higher prices.
CARNIVAL CORP Price, Consensus and EPS Surprise
CARNIVAL CORP Price, Consensus and EPS Surprise | CARNIVAL CORP Quote
Zacks Rank & Stocks to Consider
Carnival presently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some better-ranked stocks in the Leisure and Recreation Services space:
Town Sports International Holdings, Inc. carries a Zacks Rank #2 (Buy) and has posted positive earnings surprise in three of the last four quarters, with an average beat of 17.93%.
The Marcus Corporation (MCS - Free Report) sports a Zacks Rank #1. Its long-term growth estimate stands at 15% while the industry’s average is 11%.
Reading International, Inc. (RDI - Free Report) is another Zacks Rank #1 company which posted a positive surprise of 1500% in the last reported quarter.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>