Carnival Corporation’s (CCL) third quarter 2010 earnings were modestly ahead of the Zacks Consensus Estimate. The company is the largest and historically the most profitable cruise operator in the world.
A strong booking and pricing trend and successful cost-containment efforts are paying off, and thus the fiscal 2010 outlook has been raised by the company. We believe that a strong balance sheet and solid cash generation should position Carnival well and promise above-average long-term growth in an improving economy, marked with slower industry capacity growth and reviving consumer demand.
The company is also experiencing a decline in fuel prices and favorable exchange rate. Thus, we are upgrading the stock from Neutral to Outperform.
CARNIVAL CORP (CCL): Free Stock Analysis Report
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