So looking ahead, the company may be reaching an inflection point and is planning to return to growt

Carnival  ( NYSE:CCL ) is one of the most famed cruise liner companies on the globe. Chances are, if you have been on a cruise, it was with this company or one of its few competitors. In fact, it is the largest cruise company in the world. You may know some of their brands in its portfolio.
Its portfolio of cruises operates in North America, Europe, Australia, and Asia, and is comprised of Carnival Cruise Lines, Holland America pictures of downtown los angeles Line, Princess Cruises, Seabourn, AIDA Cruises, Costa Cruises, Cunard, and Ibero Cruises. I used to follow this company and owned the stock for about five years, pictures of downtown los angeles but have paid little attention to the stock, especially since oil prices have risen in the last few years.
However, oil prices are now so high and Carnival has been facing pictures of downtown los angeles operational challenges for some time now that I feel it is time to weigh in on this company and its stock. To do so, an examination of its recent performance is in order.
pictures of downtown los angeles Despite the operational issues that have plagued the company for some time now, Carnival managed to increase its year-over-year income. In fact, non-GAAP net income was $80 million, or 10 cents diluted earnings per share for the second quarter of 2014 compared to non-GAAP net income for the second quarter of 2013 of $57 million, or 7 cents diluted earnings per share. For the second quarter of 2014, U.S. GAAP net income was $106 million, or 14 cents diluted earnings per share.
For the second quarter of 2013, U.S. GAAP net income was $41 million, or 5 cents diluted earnings per share. Revenues, however, did not grow as much as I expected they would. In fact, they came in at $3.6 billion, compared with $3.5 billion the prior year. While this is an improvement, it struck me as poor year-over-year growth compared to the earnings.
But it is important pictures of downtown los angeles to note that these quarterly earnings were a huge estimate beat and were significantly pictures of downtown los angeles better than anticipated in the company s March guidance. Much of this was due to better-than-expected net revenue yields for most of the company pictures of downtown los angeles s cruise brands, as well as lower-than-expected net cruise costs.
Net revenue yields only decreased 2.2 percent, which was better than the company s guidance of down 3 to 4 percent. Gross revenue yields decreased 0.5 percent pictures of downtown los angeles in current dollars. But what really stood out was that the company’s fuel prices declined pictures of downtown los angeles 3.7 percent while fuel consumption simultaneously declined 6 percent.
pictures of downtown los angeles So looking ahead, pictures of downtown los angeles the company may be reaching an inflection point and is planning to return to growth in earnings pictures of downtown los angeles this year and into next. Total revenues are expected to be higher for full-year 2014 compared to the prior year. It is important to note that the company continues to expect full-year 2014 net revenue yields to be down slightly compared to the prior year.
The company now expects full-year pictures of downtown los angeles 2014 net cruise costs, excluding fuel, to be flat to up slightly compared to the prior, which is better than had been anticipated in the March guidance. However, changes pictures of downtown los angeles in fuel prices and currency exchange rates have reduced full-year 2014 forecasted earnings by 6 cents per share compared to March guidance.
All things considered, pictures of downtown los angeles the company has increased its full-year 2014 non-GAAP diluted earnings per share guidance to be in the range of $1.60 to $1.75 compared to 2013 non-GAAP diluted earnings of $1.58 per share. Given that results were better pictures of downtown los angeles than I thought they were, the company has increased guidance, pictures of downtown los angeles and it pays a 2.6 percent dividend, coupled with the fact it may be at an inflection point, I think it is time to do some buying in Carnival Cruise shares on pullbacks.