The 10-second takeaway
For the quarter ended Nov. 30 (Q4), Carnival missed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly, and earnings per share contracted.
Gross margins increased, operating margins dropped, and net margins dropped.
Carnival reported revenue of $3.7 billion. The 12 analysts polled by S&P Capital IQ expected a top line of $3.8 billion. Sales were 1.5% lower than the prior-year quarter's $3.5 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.28. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.28 per share. GAAP EPS of $0.28 for Q4 were 10% lower than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 30.5%, 10 basis points better than the prior-year quarter. Operating margin was 8.3%, 80 basis points worse than the prior-year quarter. Net margin was 5.9%, 70 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $3.6 billion. On the bottom line, the average EPS estimate is $0.16. (There are five revenue estimates and eight EPS estimates.)
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Carnival is outperform, with an average price target of $41.87.
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