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.
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.
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.
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.
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.
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.