Solid Quarter For Carnival Cruise Lines But Stock Is Fully Valued Here
Leading cruise operating Carnival Cruise Lines (CCL) reported solid fiscal year 3rd quarter earnings this morning. EPS of $1.33 a share beat their previous guidance of $1.15-$1.19 and they raised their full year forecast from $2.00-$2.10 to $2.16-$2.20. On a constant dollar basis net revenue yields, revenue per available bed day, decreased 12.3% from the year ago period. Overall revenues were off 14% and net income 20% from the year ago period. All in all, not a bad showing for a highly cyclical consumer discretionary company.
Still, at $34 the stock is trading at 15-16 times this years earnings. Not expensive but fully valued for a company in this line of business in this economic environment.
Disclosure: Top Gun has no position in Carnival (CCL) shares.