What to Expect When Carnival (CCL) Reports Earnings Results Tomorrow

NEW YORK (TheStreet) -- Carnival Corp. (CCL) is scheduled to report is fiscal 2014 fourth quarter earnings results before the market open on Friday, and analysts are expecting the cruise ship operator to post a year-over-year increase in earnings and revenue for the quarter.

Analysts have forecast for earnings of 20 cents per share, on revenue of $3.81 billion for the most recent quarter.

Shares of Carnival are higher by 0.04% to $44.63 at the start of trading on Thursday morning.

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For the fiscal 2013 fourth quarter Carnival reported non-GAAP net earnings of 4 cents per share, on $3.7 billion in revenue.

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

"We rate CARNIVAL CORP/PLC (USA) (CCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 4.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 44.33% is the gross profit margin for CARNIVAL CORP/PLC (USA) which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.20% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $1,120.00 million or 39.47% when compared to the same quarter last year. In addition, CARNIVAL CORP/PLC (USA) has also vastly surpassed the industry average cash flow growth rate of -17.67%.
  • You can view the full analysis from the report here: CCL Ratings Report

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