Carnival (NYSE:CCL) is one of the most famed cruise liner companies on the globe. Chances are, if you have been on a cruise, it was with this company or one of its few competitors. In fact, it is the largest cruise company in the world. You may know some of their brands in its portfolio.
Its portfolio of cruises operates in North America, Europe, Australia, and Asia, and is comprised of Carnival Cruise Lines, Holland America Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, and Ibero Cruises. I used to follow this company and owned the stock for about five years, but have paid little attention to the stock, especially since oil prices have risen in the last few years.
However, oil prices are now so high and Carnival has been facing operational challenges for some time now that I feel it is time to weigh in on this company and its stock. To do so, an examination of its recent performance is in order.
Despite the operational issues that have plagued the company for some time now, Carnival managed to increase its year-over-year income. In fact, non-GAAP net income was $80 million, or 10 cents diluted earnings per share for the second quarter of 2014 compared to non-GAAP net income for the second quarter of 2013 of $57 million, or 7 cents diluted earnings per share. For the second quarter of 2014, U.S. GAAP net income was $106 million, or 14 cents diluted earnings per share.