NEW YORK (TheStreet) -- Carnival (CCL) reported a 34% earnings increase in its quarterly report Tuesday and raised its outlook for the fiscal year. Earnings per share totaled $1.58, which beat analysts' expectations of $1.44.
TheStreet's Jim Cramer said he likes the quarter partly because fuel prices are down. He also points out that Carnival stockholders get a $200 credit for on-board spending on Carnival Cruise ships. On-board spending was up in the latest quarter, and Cramer also liked the company's numbers in Asia. Carnival's European numbers have also turned in the right direction.
Cramer notes the consolidation in the cruise industry with Royal Caribbean International (RCL) , Norwegian Cruise Line (NCLH) and Carnival, and calls the industry "terrific." He says Carnival has caught up with its peer companies and puts a $50 price target on the stock.
Watch the video below for a closer look at Carnival's latest quarterly results:
TheStreet Ratings team also rates Carnival as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARNIVAL CORP/PLC (USA) (CCL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."