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Carnival Corporation's (CCL) Q1 Earnings: What's in Store?
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Carnival Corporation (CCL - Free Report) is slated to release fiscal first-quarter 2018 results on Mar 22, before market opens.
In the to-be-reported quarter, the company’s revenues are expected to be driven by strength across its Passenger Tickets business, and Onboard and Other segments. Higher revenues and revenue yields are likely to boost earnings as well.
Notably, shares of Carnival have rallied 2.2% in the past three months, outperforming the industry’s gain of 1.7%.
Here are the expectations in detail.
Passenger Tickets & Onboard and Other Segments to Grow
Carnival generates revenues from its Passenger Tickets business, Onboard and Other as well as Tour and Other segments.
Passenger Tickets revenues are expected to increase year over year driven by price improvements in Carnival’s European, Caribbean and Alaska programs. The Zacks Consensus Estimate for revenues is pegged at $3.04 billion, reflecting a year-over-year increase of 8.3%. In the fourth quarter, passenger tickets revenues improved 9% year over year.
Onboard and Other revenueswill carry on the momentum of the fourth quarter (up 7.1% year over year) and is anticipated to record improvement in the quarter to be reported. Growth is expected to be driven by higher onboard spending by guests and capacity rise in available lower berth days (ALBD). The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.05 billion, reflecting a year-over-year increase of 7.3%.
Tour and Other revenues are expected to decline due to weak performance of Holland America Princess Alaska Tours — the tour company that Carnival owns and operates. The Zacks Consensus Estimate is pegged at $8.40 million, reflecting a year-over-year decrease of 6.7%. Revenues from this segment decreased 14.6% year over year in the fourth quarter.
Notably, the Zacks Consensus Estimate for revenues is currently pegged at $4.11 billion, reflecting an increase of 8.4%.
Net Revenue Yields to Benefit From Higher Net Ticket, Net On-board and Other Yields
While ticket yields are likely to be driven by the Carnival’s deployment of North American brands in Caribbean, Europe and Alaska, net on-board and other yields will see strengths on both sides of the Atlantic.
The Zacks Consensus Estimate for net revenue yields is pegged at $163 million, reflecting a year-over-year increase of 5.8%. This metric increased 4.2% year over year in the fourth quarter.
Occupancy Percentage to be Driven by Improved Guest Experiences
Occupancy Percentageis anticipated to stay flat on year-over-year basis, with strong bookings for Alaska and European programs being offset by weak booking patterns for the Caribbean program. The Zacks Consensus Estimate is pegged at 105%. This metric stayed more or less flat year over year in the fourth quarter as well.
EPS Growth is Likely to be Revenue Driven
The Zacks Consensus Estimate for EPS is pegged at 43 cents, reflecting year-over-year increase by 13.2%. The improvement is expected to be driven primarily by higher revenues and increase in net ticket, and on-board and other yields. Lower net cruise costs, excluding fuel, fuel consumption and depreciation expenses, might also contribute to the improvement.
In the fourth quarter, the company’s adjusted earnings per share were down 6.3% year over year.
Our Model Suggests a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Carnival has a Zacks Rank #3 and an Earnings ESP of +0.88%, a combination that increases the odds of an earnings beat.
Key Picks
Here are some companies from the Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +8.52% and a Zacks Rank #2.
Las Vegas Sands (LVS - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Carnival Corporation's (CCL) Q1 Earnings: What's in Store?
Carnival Corporation (CCL - Free Report) is slated to release fiscal first-quarter 2018 results on Mar 22, before market opens.
In the to-be-reported quarter, the company’s revenues are expected to be driven by strength across its Passenger Tickets business, and Onboard and Other segments. Higher revenues and revenue yields are likely to boost earnings as well.
Notably, shares of Carnival have rallied 2.2% in the past three months, outperforming the industry’s gain of 1.7%.
Here are the expectations in detail.
Passenger Tickets & Onboard and Other Segments to Grow
Carnival generates revenues from its Passenger Tickets business, Onboard and Other as well as Tour and Other segments.
Passenger Tickets revenues are expected to increase year over year driven by price improvements in Carnival’s European, Caribbean and Alaska programs. The Zacks Consensus Estimate for revenues is pegged at $3.04 billion, reflecting a year-over-year increase of 8.3%. In the fourth quarter, passenger tickets revenues improved 9% year over year.
Onboard and Other revenueswill carry on the momentum of the fourth quarter (up 7.1% year over year) and is anticipated to record improvement in the quarter to be reported. Growth is expected to be driven by higher onboard spending by guests and capacity rise in available lower berth days (ALBD). The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.05 billion, reflecting a year-over-year increase of 7.3%.
Tour and Other revenues are expected to decline due to weak performance of Holland America Princess Alaska Tours — the tour company that Carnival owns and operates. The Zacks Consensus Estimate is pegged at $8.40 million, reflecting a year-over-year decrease of 6.7%. Revenues from this segment decreased 14.6% year over year in the fourth quarter.
Notably, the Zacks Consensus Estimate for revenues is currently pegged at $4.11 billion, reflecting an increase of 8.4%.
Carnival Corporation Revenue (TTM)
Carnival Corporation Revenue (TTM) | Carnival Corporation Quote
Net Revenue Yields to Benefit From Higher Net Ticket, Net On-board and Other Yields
While ticket yields are likely to be driven by the Carnival’s deployment of North American brands in Caribbean, Europe and Alaska, net on-board and other yields will see strengths on both sides of the Atlantic.
The Zacks Consensus Estimate for net revenue yields is pegged at $163 million, reflecting a year-over-year increase of 5.8%. This metric increased 4.2% year over year in the fourth quarter.
Occupancy Percentage to be Driven by Improved Guest Experiences
Occupancy Percentageis anticipated to stay flat on year-over-year basis, with strong bookings for Alaska and European programs being offset by weak booking patterns for the Caribbean program. The Zacks Consensus Estimate is pegged at 105%. This metric stayed more or less flat year over year in the fourth quarter as well.
EPS Growth is Likely to be Revenue Driven
The Zacks Consensus Estimate for EPS is pegged at 43 cents, reflecting year-over-year increase by 13.2%. The improvement is expected to be driven primarily by higher revenues and increase in net ticket, and on-board and other yields. Lower net cruise costs, excluding fuel, fuel consumption and depreciation expenses, might also contribute to the improvement.
In the fourth quarter, the company’s adjusted earnings per share were down 6.3% year over year.
Our Model Suggests a Beat
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Carnival has a Zacks Rank #3 and an Earnings ESP of +0.88%, a combination that increases the odds of an earnings beat.
Key Picks
Here are some companies from the Consumer Discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Acushnet Holdings (GOLF - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +8.52% and a Zacks Rank #2.
Las Vegas Sands (LVS - Free Report) has an Earnings ESP of +0.40% and a Zacks Rank of 2.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>