All aboard, now Analysts start cutting CCL, RCL estimates. Problem is that the guidance provided by RCL for the Quarter is too high (as fuel prices have risen 33% since) so it is hard for them to meet estimates. The stocks are down premarket.
ABN cuts ratings on Carnival, Royal Caribbean, travel stocks
By Steve Goldstein
Last update: 4:34 a.m. EDT June 18, 2008
LONDON (MarketWatch) -- ABN Amro took a hatchet to its European travel and leisure sector ratings, cutting sector EPS for 2009/2010 by 16%, bringing it 15% below consensus estimates. "We find it hard to believe that demand (volume or price) from the business and/or leisure consumer will not reduce over the next 12 months; western GDP trends are slowing, business activity is softening, the credit cycle has turned, and consumer balance sheets are in many cases over-leveraged, particularly in the U.K. We, therefore, believe that a period of slower demand is likely,"
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ANALYST TAKE: Analysts generally expect Carnival to report net revenue yield in line with expectations, although higher fuel prices are expected to offset those gains. On Tuesday, Lehman Brothers analyst Felicia Hendrix noted that fuel prices have spiked 33 percent since the company provided its second-quarter guidance.
Yields are a key profitability gauge that measure net income earned from passengers per day from cruise tickets and onboard sales. |
