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Factors Setting the Tone for Carnival's (CCL) Q3 Earnings
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Carnival Corporation (CCL - Free Report) is likely to have witnessed a year-over-year decline in third-quarter fiscal 2020 earnings. In the last reported quarter, the company delivered a negative earnings surprise of 80.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal third quarter is pegged at a loss of $2.22 per share. In the prior-year quarter, the company reported earnings per share of $2.63. The consensus mark for revenues is $100.4 million, suggesting a decline of 98.5% from the year-ago reported figure.
Carnival’s fiscal third-quarter results are likely to be adversely impacted by the coronavirus pandemic. Soft passenger ticket revenues on account of the company’s limited cruise operations are likely to get reflected on the overall top line. Also, cancellations of cruises due to the ongoing crisis and change in booking patterns are likely to get reflected in the company’s results for the to-be-reported quarter.
Moreover, quarterly earnings are likely to have been negatively impacted by the cash burn. The company’s expected cash burn is $650 million per month. Despite the fact that the virus triggered a catastrophe in terms of lives lost and financial impact, Carnival has been resilient enough to navigate through the uncertain times. Notably, the company took significant actions to preserve cash and secure additional financing to maximize liquidity.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Carnival this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Carnival has an Earnings ESP +0.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Penn National Gaming, Inc. (PENN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +31.25%.
Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #3 and an Earnings ESP of +215.01%.
Zynga Inc. presently has a Zacks #3 and an Earnings ESP of +25.00%
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Factors Setting the Tone for Carnival's (CCL) Q3 Earnings
Carnival Corporation (CCL - Free Report) is likely to have witnessed a year-over-year decline in third-quarter fiscal 2020 earnings. In the last reported quarter, the company delivered a negative earnings surprise of 80.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal third quarter is pegged at a loss of $2.22 per share. In the prior-year quarter, the company reported earnings per share of $2.63. The consensus mark for revenues is $100.4 million, suggesting a decline of 98.5% from the year-ago reported figure.
Carnival Corporation Price and EPS Surprise
Carnival Corporation price-eps-surprise | Carnival Corporation Quote
Factors at Play
Carnival’s fiscal third-quarter results are likely to be adversely impacted by the coronavirus pandemic. Soft passenger ticket revenues on account of the company’s limited cruise operations are likely to get reflected on the overall top line. Also, cancellations of cruises due to the ongoing crisis and change in booking patterns are likely to get reflected in the company’s results for the to-be-reported quarter.
Moreover, quarterly earnings are likely to have been negatively impacted by the cash burn. The company’s expected cash burn is $650 million per month. Despite the fact that the virus triggered a catastrophe in terms of lives lost and financial impact, Carnival has been resilient enough to navigate through the uncertain times. Notably, the company took significant actions to preserve cash and secure additional financing to maximize liquidity.
What the Zacks Model Unveils
Our proven model does not predict an earnings beat for Carnival this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Carnival has an Earnings ESP +0.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:
Penn National Gaming, Inc. (PENN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +31.25%.
Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #3 and an Earnings ESP of +215.01%.
Zynga Inc. presently has a Zacks #3 and an Earnings ESP of +25.00%
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>