Carnival Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Carnival Corp (NYSE:CCL) will unveil its latest earnings on Tuesday, June 21, 2011. Carnival Corporation is a cruise and vacation company operating in the United States and internationally. It offers a portfolio of various recognized cruise brands and provides cruises to all main vacation destinations. It has a North America segment separate from a Europe, Australia & Asia segment.

Carnival Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating profit of 22 cents per share, a decline of 31.3% from the same quarter a year ago. Estimates range from net income of 19 cents per share to profit of 24 cents per share. Over the past three months, the consensus estimate has moved down from 34 cents. The consensus estimate is unchanged from a month ago. For the year, analysts are projecting net income of $2.56 per share, a rise of 2.8% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after beating the forecasts in the prior two. In the first quarter of the last fiscal year, the company reported profit of 19 cents per share versus a mean estimate of net income of 32 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $3.52 billion in revenue this quarter, a rise of 10% from the year ago quarter. Analysts are forecasting total revenue of $15.7 billion for the year, from last year’s revenue of $14.47 billion.

Analyst Ratings: Analysts are bullish on this stock with 13 analysts rating it as a buy and none rating it as a sell. While the average rating for the stock remains a moderate buy, the strength of the rating has dwindled over the past three months.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10.5% to $2.7 billion in first quarter of the last fiscal year. The figure rose 17% in fourth quarter of the last fiscal year from the year earlier and climbed 6.9% in third quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 28.5% in the first quarter of the last fiscal year and 21.4% in the fourth quarter of the last fiscal year.

The company’s gross margin shrank by 2.2 percentage points in the last quarter. Revenue rose 10.5% while cost of sales rose 14.1% to $1.89 billion from a year earlier.

Companies to Watch: Ambassadors Intl., Inc. (NASDAQ:AMIE), Royal Caribbean Cruises Ltd. (NYSE:RCL), (NASDAQ:PCLN), Expedia (NASDAQ:EXPE), Delta (NYSE:DAL), AMR Corp (NYSE:AMR), United Continental (NYSE:UAL), JetBlue (NASDAQ:JBLU) and US Airways (NYSE:LCC).

Recent Price Movement: From a month ago, the stock price has dropped $3.77 (-9.5%) from $39.57 on May 16, 2011 to $35.80 on June 10, 2011. The stock price saw one of its best stretches over the last year between October 28, 2010 and November 5, 2010 when shares rose for seven-straight days, rising 3.8% (+$1.61) over that span. It saw one of its worst periods between August 5, 2010 and August 16, 2010 when shares fell for eight-straight days, falling 9.4% (-$3.32) over that span. Shares are down $9.78 (-21.5%) year to date.

(Source: Xignite Financials)

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