The 10-second takeaway
For the quarter ended Feb. 28 (Q1), Carnival met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Margins expanded across the board.
Carnival booked revenue of $3.59 billion. The eight analysts polled by S&P Capital IQ wanted to see revenue of $3.63 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. Non-GAAP EPS of $0.08 for Q1 were 300% higher than the prior-year quarter's $0.02 per share. GAAP EPS were $0.05 for Q1 versus -$0.18 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 28.6%, 290 basis points better than the prior-year quarter. Operating margin was 4.2%, 10 basis points better than the prior-year quarter. Net margin was 1.0%, 490 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.56 billion. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $15.61 billion. The average EPS estimate is $2.02.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Carnival is outperform, with an average price target of $41.70.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Carnival. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Carnival to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.