) reported its first-quarter fiscal 2013 adjusted earnings of 8
cents per share, ahead of the Zacks Consensus Estimate of 4 cents
per share and the year-ago quarter's earnings of 2 cents per
share. The earnings in the quarter were also ahead of
management's guidance of 3−7 cents per share.
Total revenues in the quarter increased 0.3% year over year to
$3,593 million but missed the Zacks Consensus Estimate of $3,634
Net revenue yields (in constant currency) declined 2.3% year
over year. At current dollars, gross revenue yields dropped 3.4%.
Net cruise costs (in constant dollar), excluding fuel per
available lower berth day (ALBD), also declined 2.3% year over
year. Fuel price was $677 per metric ton in the quarter, down 4%
year over year.
Passenger Tickets revenue in the quarter declined 0.9% year
over year to $2,740.0 million.
Onboard and Other
In the first-quarter of fiscal 2013, Onboard and Other
revenues were $844.0 million, up 4.3% year over year.
Tour and Other
Revenue for the segment remained flat year over year to $9
At the end of the first-quarter fiscal 2013, Carnival had cash
and cash equivalents of $476 million versus $465 million in the
previous quarter. Long-term debt was $7,622 million compared with
$7,168 million in the fourth-quarter fiscal 2012.
Second Quarter 2013 Guidance
Management expects that net revenue yield (in constant dollar)
will witness a fall in the second-quarter fiscal 2013. Net cruise
costs per ALBD (in constant dollar), excluding fuel are projected
to grow 9.5−10.5%.
Based on current fuel prices and currency exchange rates, the
company expects adjusted diluted earnings to be within 4−8 cents
per share in the second quarter.
Full Year 2013 Guidance Revised
Owing to the prevailing economic headwinds Carnival now
expects net revenue yields for fiscal 2013 to be flat year over
year compared with the previous guidance of up 1.0−2.0% (in
Carnival has raised its guidance for net cruise costs per ALBD
(in constant dollar), excluding fuel, from 1.0−2.0% to 2.5−3.5%.
Carnival's cruise cost is expected to be high due to the recent
Carnival now expects diluted earnings of $1.80-$2.10 per share
down from the previous guidance of $2.20−$2.40 per share.
Carnival is the largest and historically the most profitable
cruise operator in the world. We believe that Carnival is
recovering at a steady pace from the Costa disaster and we also
expect the Costa cruises to swing back to profitability, moving
forward. Carnival is also witnessing an increase in booking
However, the recent voyage disruption may hurt Carnival's
performance, going ahead. Moreover, the prevailing economic
uncertainty and higher overall unit costs pose major threats to
Carnival in 2013.
Carnival currently carries a Zacks Rank #3 (Hold). Some other
stocks in the same sector that are going to perform well include
Cedar Fair, L.P.
Speedway Motorsports Inc.
Churchill Downs Inc.
Cedar currently carries a Zacks Rank #2 (Buy) while both Speedway
and Churchill Down carry a Zacks Rank #1 (Strong Buy).
CARNIVAL CORP (CCL): Free Stock Analysis
CHURCHILL DOWNS (CHDN): Free Stock Analysis
CEDAR FAIR (FUN): Free Stock Analysis Report
SPEEDWAY MOTORS (TRK): Free Stock Analysis
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