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Zacks Investment Research, All Rights reserved.
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Carnival Corporation
(CCL
-
NYSE)
SUMMARY
SUMMARY DATA
Risk
Level *
Low,
Type of Stock
Large
-
Value
Industry
Leisure&Rec Svs
Zacks Industry
Rank *
91 out of 267
Current
Recommendation
NEUTRAL
Prior Recommendation
Underperform
Date of Last Change
07/28/2013
Current Price (02/10/15)
$43.55
Target Price
$46.00
Carnival Corp. posted better-
than
-
expecte
d fourth-
quarter fiscal 2014 earnings of $0.27 per share, which
beat the Zacks Consensus Estimate by 42.1% and
increased substantially year over year backed by higher
revenues and higher-
than
-expected revenue yields.
Revenues missed the consensus mark, but increased
1.6% year over year driven by higher cruise sales and
onboard
spending.
Going
forward,
brand-
building
efforts and other promotional activities are expected to
increase
bookings
for
the
company.
Also,
the
company
s strategy to grow beyond familiar itineraries
and tap the Asian market requires special mention.
However, higher marketing spend remains a major
threat to margin expansion in the coming period. We
also remain wary of the anticipated increase in net
cruise costs in 2015, especially because of technology
designed to improve fuel efficiency. We, thus, maintain
a Neutral recommendation on the stock.
52
-
Week High
$46.76
52
-
Week Low
$33.88
One
-
Year Return (%)
10.41
Beta
1.32
Average Daily Volume (sh)
3,965,206
Shares Outs
tanding (mil)
593
Market Capitalization ($mil)
$25,8
25
Short Interest Ratio (days)
2.25
Institutional Ownership (%)
78
Insider Ownership (%)
28
Annual Cash Dividend
$1.00
Dividend Yield (%)
2.30
5-
Yr. Historical Growth Rates
Sales (%)
2.7
Earnings Per Share (%)
-
8.8
Dividend (%)
19.3
P/E using TTM EPS
22.
2
P/E using 2015 Estimate
17.1
P/E using 2016 Estimate
13.4
Zacks R
ank
*:
Short Term
1
3 months
outlook
2
-
Buy
* Definition / Disclosure on last page
ZACKS
CONSENSUS
ESTIMATES
Revenue
Estimates
(I
n million
s of $)
Q1
Q2
Q3
Q4
Year
(Feb)
(May)
(Aug)
(Nov)
(Nov)
2013
3,593 A
3,479 A
4,726 A
3,659 A
15,457 A
2014
3,585 A
3,633 A
4,947 A
3,718 A
15,884 A
2015
3,583 E
3,659 E
4,927 E
3,785 E
15,954 E
2016
17,076 E
Earnings
P
er Share
Esti
mates
(EPS is operating earnings before non
-
recurring items
, but including employee
stock options expenses)
Q1
Q2
Q3
Q4
Year
(Feb)
(May)
(Aug)
(Nov)
(Nov)
2013
$0.08 A
$0.09 A
$1.38 A
$0.04 A
$1.58 A
2014
$0.00 A
$0.10 A
$1.58 A
$0.27 A
$1.96 A
2015
$0.09 E
$0.27
E
$1.76 E
$0.42
E
$2.54 E
2016
$3.25
E
P
rojected EPS Growth
-
Next 5 Years %
15
February 11, 2015
Equity Research
CCL
|
Page
2
OVERVIEW
Founded in 1974 and headquartered in Miami, FL, Carnival Corporation (CCL) operates as a cruise and
vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest
cruise operator in the world.
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
segm
ent through its Holland America and Princess brands and the luxury cruise segment through its
Seabourn brand.
