Carnival (LON:CCL) PLC. (NYSE:CCL) Earnings Preview And Technicals
Carnival Corp. is set to release second-quarter earnings on June 23 with analyst estimates set at 39 cents earnings per share on $3.68 billion in revenues, which is up from the same period last year at 25 cents per share.
Looking at the daily chart you will see that shares have been under some pressure in 2016 and are trading below their 200-day moving average currently sitting at $49.99. As of the close on Friday, 6/17/2016, at $47.81 shares are down over 11% on the year but are trading up from lows that were put in back in February at $40.52. Shares are going to need to reclaim the 200-day moving average on volume to confirm that bulls have taken control but until then this chart is bearish and should be approached accordingly. Currently analyst have an average price target of $59.38.
Analyst Thoughts
Like most transportation stocks, rising oil’s recovery has put pressure on cruise operator Carnival, but the stock’s valuation has become pretty attractive, with a P/E of 20.0, and analysts forecasting earnings growth of 25.9% this year, and 16.8% next year. Carnival has a solid track record of posting better than expected earnings, with better than expected results each quarter since its second quarter 2013. One of the company’s biggest competitors, Royal Caribbean reported in late April, posting solid numbers, and suggesting that CCL will likely extend its steak of better than expected quarterly reports. While the stock has been trending slightly lower, a solid report should bring enthusiasm back in the stock, and help shares regain some of the recent losses. Wall Street remains very bullish on the stock, setting an average price target on the stock of $60.19, with the stock now trading at just $47.82. The consensus calls for $0.39, but the street’s whisper number is a bit higher at $0.43, which is what Wall Street will really want to see in order for shares to make a significant move higher. – NASDAQ
CCL Profile
Carnival Corporation operates as a leisure travel and cruise company in North America, Europe, Australia, and Asia. It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line, and Seabourn brands in North America; and Costa, AIDA, P&O Cruises (UK), Cunard, and P&O Cruises (Australia) brands in Europe, Australia, and Asia. The company operates 99 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates 11 hotels or lodges, approximately 300 motor coaches, and 20 glass-domed railcars. In addition, the company is involved in the leasing of cruise ships. It sells its cruises primarily through travel agents and tour operators. Carnival Corporation was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation operates as a subsidiary of Carnival Corporation & Plc. – YahooFinance