Carnival set to report third-quarter results with shares near annual lows
Consensus projections called for higher revenue but lower quarterly earnings per share.
Carnival Corporation was set to release fiscal third-quarter results on Tuesday, Sept. 29, with its shares trading near 52-week lows. Pullbacks across cruise stocks, including Royal Caribbean Group and Norwegian Cruise Line Holdings, were attributed to higher fuel costs, geopolitical disruptions and concerns about travel demand.
The Zacks Consensus Estimate projected Carnival would report earnings of $1.36 per share, about 5% below the prior-year period. Revenue was expected to increase more than 2% to $8.36 billion. Higher expenses and Middle East-related disruptions to European and Mediterranean itineraries were cited as pressures on results.
Carnival had exceeded earnings expectations for 15 consecutive quarters. Its average earnings-per-share surprise over the four most recent quarterly reports was 18.15%.
For the full year, Carnival’s earnings per share were projected to decline 2% to $2.20. The company’s stock received a Zacks Hold rating, reflecting an assessment that its valuation was attractive while stronger momentum in earnings estimates could be needed to support a more convincing rebound.
