Carnival Continues Its Street-Beat Streak With Q2 2016 Results

Carnival Corp CCL “continued its multi-year quarterly EPS upside streak,” reporting its 2Q16 EPS ahead of the estimate and the consensus.

Barclays’ Felicia R. Hendrix maintains an Equal-Weight rating on the company, while lowering the price target from $58 to $56.

Guidance Reiterated

The company issued its 3Q16 net yield guidance, with the high end of the range in line with the consensus.

Carnival also reiterated its full-year EPS guidance at the midpoint, despite fuel and FX headwinds.

“In addition, the booking curve continues to expand and 2017 is starting out on solid footing, positioning the company well to potentially raise prices down the road,” Hendrix mentioned.

However, the analyst cautioned that the ongoing concerns regarding growing supply in China, weakness in the North American sourced seasonal Med product and overall industry supply growth “continues to attract a segment of the investment community that believes ‘now is as good as it gets’ and that there is risk to next year's earnings forecasts.”

F2Q16 Results

Carnival reported its F2Q16 EPS ahead of the estimate, consensus and guidance, with part of the upside driven by higher net yields and lower NCC ex-fuel.

Constant currency net yields also beat the estimate.

At time of writing, Carnival was up 2.13 percent on the day, trading at $44.66.