Boston, MA 09/24/2014 (wallstreetpr) – Investment advisor S&P Capital IQ has boosted the price target on the shares of the cruise company, Carnival plc (ADR) (NYSE:CUK) by $2. The move comes on the heels of the company disclosing its third quarter financial results on September 23.
Lifts Price Target
The brokerage has lifted its price target to $46 from $44 projected by it earlier based on the currency conversion of GBP – USD at 1.6367 on estimated fiscal year 2015 profit earning ratio of 19.9X and compared with 3-year historic average price earning ratio of 20.3X.
Its analyst Carl Short has also increased his earnings per share estimation for the fiscal year 2014 and 2015 by 18 cents and 11 cents respectively. As a result, his revised earnings estimation for the fiscal year 2014 stands at $1.86 a share and for the fiscal year 2015 at $2.29 a share.
S&P Capital IQ said that the company delivered better than its estimations with earnings and revenues recording growth for the key third quarter period delivering 85% of fiscal year earnings. Its net revenue yields per available lower berth day witnessed 1.8% uptick, excluding forex, due to the strength in China, and passenger numbers increased 3.5%. Carnival plc (ADR) (NYSE:CUK) also increased its fiscal year 2014 earnings outlook, and the brokerage has taken into consideration favorable advance bookings for the first half of fiscal year 2015.
As a result, the brokerage maintained its Buy rating on the shares of Carnival.
3Q Results
Carnival delivered net income of $1.25 billion for the third quarter, up 33.5% from $934 million and earnings increased 33.33% to $1.60 a share from $1.20 a share in the year-ago quarter, its statement revealed. On an adjusted basis, its earnings grew 14.5% to $1.58 a share from $1.38 a share in the same quarter last year.
Carnival plc (ADR) (NYSE:CUK)’s top line advanced 5% to $4.95 billion from $4.73 billion in the previous year quarter.
Carnival plc (ADR) (NYSE:CUK) has also boosted its adjusted earnings forecast for the fiscal year 2014 to $1.84 – $1.88 a share from $1.60 – $1.75 a share projected by it while announcing its second quarter financial results.
