Carnival Expected To Deliver 30%-70% YoY Earnings Growth

Shares of Carnival Corp CCL are up on Monday, ahead of the announcement of the company’s second quarter financial results, scheduled for Tuesday morning, before the market opens.

As it can be seen in the chart above, the cruise line operator’s earnings are quite cyclical, and the second quarter is usually a relatively soft one.

According to Estimize, however, expectations point toward a year-over-year increase in earnings of 30 to 70 percent.

Management guided earnings of $0.13 per share on revenue of $3.724 billion; the Street models earnings of $0.15 per share on revenue of $3.534 billion; and the crowd projects earnings of $0.17 per share on revenue of $3.588 billion.

These estimates compare to the earnings of $0.10 per share on revenue of $3.663 billion reported in the second quarter of 2014.

Strong Prospects

In a report published Monday, Deutsche Bank analyst Richard Carter upgraded Carnival’s stock’s rating from Neutral to Buy, while raising the price target from $55.00 to $55.30.

The firm expects second-quarter earnings in the high end of the management’s guidance range, a recovery in pricing and bookings, and better operational momentum for its core Carnival brand.