corporate final paper info - Carnival Corporation Current Recommendation Underperform Date of Last Change Current Price $43.55 Target Price SUMMARY

corporate final paper info - Carnival Corporation Current...

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© 2015 Zacks Investment Research, All Rights reserved. 10 S. Riverside Plaza , Chicago IL 60606 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
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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.
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