Shares of the cruise company,
) reached a 52-week high of $40.47 on Tuesday, Dec 31, 2013 after
posting impressive fourth-quarter fiscal 2013 results on Dec 19,
2013. The company's share price has been showing an uptrend since
the fourth quarter results.
Adjusted earnings of 4 cents per share beat the Zacks Consensus
Estimate of a breakeven result driven by higher revenues. Despite
declining year over year, fourth quarter earnings were ahead of
management's guidance of a loss of 3 cents to earnings of 3
The top line increased 2.2% year over year and beat the Zacks
Consensus Estimate by approximately 2.3%. The upside was driven
by increased cruise sales resulting from higher ticket prices and
increased onboard spending, which offset lower net revenue
Though the company expects to incur a loss in fiscal first
quarter 2014, it expects to return to profit by the end of the
year. It also expects revenue yield to improve in the second half
of 2014 driven by a better booking environment and higher ticket
Driven by the strong results, estimates for fiscal 2014 largely
moved upwards over the last 30 days. The Zacks Consensus Estimate
for fiscal 2014 increased 5.7% to $1.68 over the same period.
Going forward, the company's brand-building efforts and other
promotional activities are expected to continue to prove
beneficial for the company. Reduction in fuel consumption is
another bright spot in Carnival's report card. The company
presently has a short-term Zacks Rank #2 (Buy).
Some other stocks worth considering in the sector include
SeaWorld Entertainment, Inc.
Interval Leisure Group, Inc.
). While SeaWorld Entertainment holds a Zacks Rank #1 (Strong
Buy), HomeAway Inc. and Interval Leisure Group carry a Zacks Rank
HOMEAWAY INC (AWAY): Free Stock Analysis
CARNIVAL CORP (CCL): Free Stock Analysis
INTERVAL LEISUR (IILG): Free Stock Analysis
SEAWORLD ENTERT (SEAS): Free Stock Analysis
To read this article on Zacks.com click here.