Carnival Goes Red

Carnival (NYSE: CCL  ) reported earnings on March 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q1), Carnival met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins dropped across the board.

Revenue details
Carnival logged revenue of $3.58 billion. The 10 analysts polled by S&P Capital IQ hoped for a top line of $3.55 billion on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $3.42 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.02. The 14 earnings estimates compiled by S&P Capital IQ forecast -$0.03 per share on the same basis. GAAP EPS were -$0.18 for Q1 versus $0.19 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.7%, 430 basis points worse than the prior-year quarter. Operating margin was 4.1%, 280 basis points worse than the prior-year quarter. Net margin was -3.9%, 830 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.55 billion. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $15.68 billion. The average EPS estimate is $1.60.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Carnival is outperform, with an average price target of $32.27.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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  • Report this Comment On April 04, 2012, at 4:05 PM, mahelan wrote:

    Carnival is like a beached whale on a heavy marketing life support and dubious investment in Japanese market. One more accident, not necessarily as severe as the Costa Concordia one, will bring down the sales dramatically. The rumors are that on these cruise ships, the purser and chef have more say than the captain. Also, one thing is analyst estimates, another thing is fundamentals like operating margin and cash flow; none of these look that good.

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