3 Reasons to Buy the Dip on Carnival Stock

Shares of Carnival (NYSE: CCL), the world's largest cruise line, were pulling back on Monday after a strong earnings report. Carnival delivered another quarter of record results during its third quarter, the seasonally strongest period of the year.Revenue in the quarter rose 3.3% to $8.15 billion, which edged out estimates at $8.11 billion. Net yields, or prices, hit an all-time high over the last four quarters, which helped the company deliver strong margin expansion. Adjusted net income improved from $1.75 billion to $1.98 billion, or $1.43 per share, which was better than the consensus at $1.32. Carnival also raised its guidance, reflecting improved net yields and effective cost management. It's now calling for adjusted net income to rise 55% for the year to $2.95 billion, or $2.14 a share. Additionally, it sees net yields up 5.3%, compared to a 3.3% increase in adjusted costs, and it expects a 15% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $7.05 billion.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool