Tom Reese/Paul Rubillo, Dividend.com
Carnival Corp (CCL) just announced its fourth quarter profits climbed 4% to $371 million, or 47 cents per share, from $358 million, or 44 cents, a year ago.
The company, which had suspended its dividend payouts recently, said its revenue rose 6 percent to $3.3 billion, on better cost controls and higher prices on some cruise lines.
The company is lowering its 2009 EPS guidance to a range of $2.25 to $2.75, below previous estimates of $2.50 to $3. Management cites occupancy levels for advance bookings, which are trending behind last year's levels.
The Bottom Line
We stopped rating the stock after the company decided to stop paying out dividends. The shares do have technical support in the $16-18 price area. If that fails to hold, then the $12-13 level would be the next major support levels. It is quite possible that the company will reinstate its dividend payout if the economy can stabilize, so we'll keep a close eye on the world's largest cruise-ship operator.
Carnival Corp (CCL) does not currently pay a dividend.
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