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.

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