Carnival approaches third-quarter report near 52-week lows
Consensus estimates pointed to modest revenue growth alongside lower quarterly and full-year earnings per share.
Carnival Corporation was set to report fiscal third-quarter results on Tuesday, Sept. 29, as its shares hovered near their 52-week lows. Cruise stocks, including Royal Caribbean and Norwegian Cruise Line Holdings, had experienced sizable pullbacks amid higher fuel costs, geopolitical disruptions and concerns about travel demand.
The Zacks Consensus Estimate called for Carnival to report quarterly earnings of $1.36 per share, down about 5% from a year earlier. Revenue was projected to rise more than 2% to $8.36 billion. The earnings estimate reflected higher costs and Middle East-related disruptions affecting European and Mediterranean itineraries.
Carnival had exceeded earnings expectations for 15 consecutive quarters and delivered an average earnings-per-share surprise of 18.15% over its four most recent quarterly reports.
With its shares trading around $22, Carnival’s forward-earnings valuation was roughly aligned with Norwegian Cruise Line’s and below those of Royal Caribbean and the broader industry average. Carnival’s full-year earnings were projected to decline 2% to $2.20 per share.
