Why Carnival (CCL) Stock Is Lower On Tuesday Afternoon

NEW YORK (TheStreet) -- Shares of Carnival Corp. (CCL) are down by -2.13% to $38.57 on Tuesday afternoon, continuing a decline the stock started earlier in the day following its 2014 second quarter earnings results.

Carnival's stock began to fall due to its lower than expected guidance for the 2014 third quarter. The company estimates EPS for the next quarter will be between $1.38 and $1.44. The consensus estimate is for EPS of $1.52.

However, the cruise company did issue full year 2014 guidance of $1.60-$1.75 EPS, compared to its prior guidance of $1.50-$1.70. The consensus expectation is $1.75.


The company posted an EPS of 10 cents per share for the 2014 second quarter, exceeding analyst estimates by 8 cents. Revenue for the quarter was $3.63 billion, compared to the consensus estimate of $3.61 billion. 

Separately, TheStreet Ratings team rates CARNIVAL CORP/PLC (USA) as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CARNIVAL CORP/PLC (USA) (CCL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

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