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.
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.
Carnival Plc (CUK): Read the Full Research
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