Carnival Plc (CUK): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Carnival posted better than expected second-quarter fiscal 2014 results with of earnings of $0.10 per share beating the Zacks Consensus Estimate substantially and remained up 43% year over year, thanks to higher revenues, better-than-expected revenue yields as well as lower than anticipated cruise costs. Revenues also surpassed the Consensus mark by 1.4% owing to higher in cruise sales and onboard spending. Reduction in fuel consumption is a bright spot in Carnival's report card. Moreover, the brand-building efforts and other promotional activities are expected to bode well for the company. Also, the company's strategy to grow beyond familiar itineraries and capitalize on Asian opportunities requires special mention. However, higher operating costs owing to increased marketing spend remain a major threat to margin expansion. Meanwhile, the company expects revenue yield to slightly decline in fiscal 2014 on yearly basis, which remains a headwind.

Overview:

Founded in 1974 and headquartered in Miami, FL, Carnival plc operates as a cruise and vacation company.

Carnival's cruise ships offer various itineraries to passengers worldwide under leading cruise brands through its three primary segments North America cruise brands, EAA cruise brands and Cruise Support. Additionally, the company has a Tour and Other segment. In North America, the company serves the contemporary cruise segment through its Carnival Cruise Lines brand, the premium cruise segment through its Holland America and Princess brands and the luxury cruise segment through its Seabourn brand.

EAA cruise segment includes AIDA, Costa Cruises, Cunard, Ibero, P&O Cruises (Australia) and P&O Cruises (UK). The company's third segment Cruise Support represents cruise port and related facilities and other corporate-wide services that are provided for the benefit of cruise brands.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

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