CALL TO ACTION
CCL’s earnings release and conference call went as planned. A big Q2 beat but little change to 2015 yield or EPS guidance. With the stock up today, it appears that investors view the guidance as conservative, once again.
We’ll take the other side to this – guidance looks reasonable to us, given the company’s struggles in Europe. CCL, along with RCL, tends to trade on the assumption that Street estimates are too low. If we’re right, in-line performance won’t be good enough and stock upside in both names should be limited.
Please see our detailed note: