) reported third quarter 2012 adjusted earnings of $1.53 per share,
breezing past the Zacks Consensus Estimate of $1.46 per share. On a
GAAP basis, the company reported earnings of $1.71 per share which
improved from the year-ago quarter earnings of $1.69 per share.
Total revenue in the third quarter of 2012 decreased 7.4% year over
year to $4,684.0 million but surpassed the Zacks Consensus Estimate
of $4,651.0 million.
On a constant currency basis, net revenue yields declined 5.3% year
over year. Excluding the effects of the Costa Concordia disaster,
net revenue yields dipped 2.1%. Gross revenue yields fell 9.2% at
current dollars due to unfavorable fluctuations in currency. Net
cruise costs, excluding fuel per available lower berth day (ALBD),
decreased 3.0% year over year on a constant dollar basis. Fuel
price of $659 per metric ton was down 4.0% year over year.
Revenue declined to $3,561.0 from $3,907.0 million in the year-ago
Onboard and Other:
Revenue increased to $965.0 million from $936.0 million in the
Tour and Other:
Revenue for the segment declined to $158.0 million from $215.0
million in the year-ago quarter.
Fourth Quarter 2012 Guidance
Management expects net revenue yield on a constant dollar basis to
decline 5.0-6.0%. Net cruise costs per ALBD, excluding fuel are
expected to be down 2.0-3.0% on a constant dollar basis. On a
current dollar basis, net cruise costs per ALBD, excluding fuel,
are projected to be down 4.0-5.0% while yields are projected to be
Based on current fuel prices and currency exchange rates, the
company expects adjusted diluted earnings in the range of 7-11
cents per share. Unfavorable changes in currency and fuel prices
will likely hurt fourth quarter earnings by 8 cents per share.
Full Year 2012 Guidance
Carnival expects net revenue yields on a constant dollar basis,
excluding Costa, to be flat to slightly lower than the year-ago
quarter, but including Costa the company predicts a decrease of 3%
in net revenue yield.
Net cruise costs per ALBD, excluding fuel, are projected to be down
1.0% on a constant dollar basis. On a current dollar basis, net
cruise costs per ALBD, excluding fuel, are projected to be down
3.0%. Fuel expenses are estimated at $716.0 per metric ton.
Carnival has revised its non-GAAP earnings in the range of
$1.83-$1.87 per share from its previous outlook of $1.80-$1.90 per
We believe that Carnival is recovering at a good pace from the
Costa disaster. The company is also experiencing increase in
on-board revenue yields as well as booking volume. Its cost
containment efforts are also paying off.
However, the sluggish European economy that led to an uncertain
consumer confidence in Europe and adverse currency translations are
posing major threats to the company.
Carnival, which competes with
Royal Caribbean Cruises Ltd.
), currently retains a Zacks #3 Rank (short-term Hold rating). We
also reiterate our long-term Neutral recommendation on the
CARNIVAL CORP (CCL): Free Stock Analysis Report
ROYAL CARIBBEAN (RCL): Free Stock Analysis
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