Yahoo Finance Results: Carnival Corporation & plc Confounded Analyst Expectations With A Surprise Profit
It's been a pretty great week for Carnival Corporation & plc (NYSE:CCL) shareholders, with its shares surging 15% to US$18.37 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of US$5.8b were what the analysts expected, Carnival Corporation & surprised by delivering a statutory profit of US$0.07 per share, instead of the previously forecast loss. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Carnival Corporation &
Following the latest results, Carnival Corporation &'s 20 analysts are now forecasting revenues of US$24.7b in 2024. This would be a modest 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 47% to US$1.05. In the lead-up to this report, the analysts had been modelling revenues of US$24.5b and earnings per share (EPS) of US$0.94 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.1% to US$22.34. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Carnival Corporation & analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$13.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Carnival Corporation &'s rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.0% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Carnival Corporation & is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Carnival Corporation &'s earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Carnival Corporation & analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Carnival Corporation & that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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