3 Drivers Behind Carnival's Post-Earnings Pop
Carnival (NYSE: CCL) shares saw a nice 8% pop after the company reported its fourth-quarter earnings on Friday. The cruise company's results topped analyst expectations, with reported fiscal fourth-quarter adjusted earnings per share of $0.62 on $4.8 billion in revenue, versus analyst estimates of $0.50 in adjusted earnings on $4.57 billion in revenue. Net revenue yield decreased by 1.8% year over year on a constant currency basis, versus expectations of a 2% to 3% drop.
After a series of company downgrades of its full-year guidance in 2019 that had shares trading near multiyear lows, investors were pleased with the latest earnings beat and fiscal 2020 guidance that was on the higher end of expectations.
The world's largest leisure travel company is still facing several headwinds that have been plaguing it for the past few quarters, but guidance for fiscal 2020 and strong bookings figures impressed. Management cited economic slowdowns in key European markets and the unfavorable Cuba regulatory change as 2019 headwinds that are likely to continue in 2020. Carnival's North American and U.K. markets continue to see strong demand.
Source Fool.com
