Add group to favorites
Back to post list
Send new message to group Search:
Post Subject:
Zacks Analyst Interview Highlights: Carnival, Marriott and Starwood Hotels
Zacks Analyst Interview Highlights: Carnival, Marriott and Starwood Hotels
To Whom It May Concern:
We received this information/press release from the trades and thought it
may be of interest to this newsgroup as well.
Happy sailing...
John Sisker - SHIP-TO-SHORE CRUISE AGENCY (sm)
(714) 536-3850 or toll-free at (800) 724-6644 & (Agency ID: 714.536.3850)
www .shiptoshorecruise,com
CHICAGO-- (BUSINESS WIRE) -- Zacks,com releases the latest Analyst
Interview. Today's interview is with senior analyst Sean P. Smith, who
discusses Carnival Corp. (NYSE: CCL), Marriott International (NYSE: MAR) and
Starwood Hotels & Resorts (NYSE: HOT).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http :// at.zacks,com /?id&78.
Is there some negative sentiment in the cruise line industry overall,
presently?
Carnival (NYSE: CCL) did exceed the consensus earnings estimate in the most
recent quarter, but the company also lowered its full-year outlook. Top-line
revenue and booking trends have remained resilient, although the cruise
companies are experiencing lower on-board spending in light of the current
economic downturn.
The high cost of fuel, however, is having a significant negative impact on
the bottom lines of the cruise companies. Carnival expects that fuel
expenses in 2008 will be $752 million greater than in 2007, reducing 2008
earnings by $0.92 per share. With the stock currently trading at a multiple
of roughly 13x expected 2008 EPS, the negative impact exerted on the share
price by the higher fuel expenses is substantial.
What about the hotel industry? What trends do you see here?
The hotel industry is feeling the impact of the weak U.S. economy. For
example, Marriott (NYSE: MAR) recently lowered its outlook for
second-quarter revenue per available room (RevPAR) growth in North America
to approximately 2%, down from the company's previous expectation of 3% to
5%. The company also stated that it would be surprised if the current RevPAR
environment in North America improved in the second half of the year.
With individual consumers feeling pressures from the declining housing
market, high gas prices and an increasing rate of inflation, hotel companies
are limited in their ability to push room rates higher. The increasing focus
on cost-cutting by U.S. corporations extends this pressure to business
travel, which is the most profitable segment for lodging companies.
Do you have any top Buys for us at this time?
On the lodging side of the industry, we have a Buy rating on Starwood Hotels
& Resorts (NYSE: HOT). We believe that the company's geographically diverse,
high-end portfolio is well positioned for the long-term.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen
insights to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.
Zacks Profit from the Pros e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free
newsletter today by visiting http :// at.zacks,com /?id&79.
About Zacks
Zacks,com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find
patterns in stock market data that would lead to superior investment
results. Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues to
outperform the market by nearly a 3 to 1 margin. The best way to unlock the
profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros.
In short, it's your steady flow of Profitable ideas GUARANTEED to be worth
your time! Register for your free subscription to Profit from the Pros at
http :// at.zacks,com /?idE81.
Visit http :// www .zacks,com /performance for information about the performance
numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any
investments. Nothing herein should be construed as an offer or solicitation
to buy or sell any security.
To Whom It May Concern:
We received this information/press release from the trades and thought it
may be of interest to this newsgroup as well.
Happy sailing...
John Sisker - SHIP-TO-SHORE CRUISE AGENCY (sm)
(714) 536-3850 or toll-free at (800) 724-6644 & (Agency ID: 714.536.3850)
www .shiptoshorecruise,com
CHICAGO-- (BUSINESS WIRE) -- Zacks,com releases the latest Analyst
Interview. Today's interview is with senior analyst Sean P. Smith, who
discusses Carnival Corp. (NYSE: CCL), Marriott International (NYSE: MAR) and
Starwood Hotels & Resorts (NYSE: HOT).
Get the most recent insight from Zacks Equity Research with the free Profit
from the Pros newsletter: http :// at.zacks,com /?id&78.
Is there some negative sentiment in the cruise line industry overall,
presently?
Carnival (NYSE: CCL) did exceed the consensus earnings estimate in the most
recent quarter, but the company also lowered its full-year outlook. Top-line
revenue and booking trends have remained resilient, although the cruise
companies are experiencing lower on-board spending in light of the current
economic downturn.
The high cost of fuel, however, is having a significant negative impact on
the bottom lines of the cruise companies. Carnival expects that fuel
expenses in 2008 will be $752 million greater than in 2007, reducing 2008
earnings by $0.92 per share. With the stock currently trading at a multiple
of roughly 13x expected 2008 EPS, the negative impact exerted on the share
price by the higher fuel expenses is substantial.
What about the hotel industry? What trends do you see here?
The hotel industry is feeling the impact of the weak U.S. economy. For
example, Marriott (NYSE: MAR) recently lowered its outlook for
second-quarter revenue per available room (RevPAR) growth in North America
to approximately 2%, down from the company's previous expectation of 3% to
5%. The company also stated that it would be surprised if the current RevPAR
environment in North America improved in the second half of the year.
With individual consumers feeling pressures from the declining housing
market, high gas prices and an increasing rate of inflation, hotel companies
are limited in their ability to push room rates higher. The increasing focus
on cost-cutting by U.S. corporations extends this pressure to business
travel, which is the most profitable segment for lodging companies.
Do you have any top Buys for us at this time?
On the lodging side of the industry, we have a Buy rating on Starwood Hotels
& Resorts (NYSE: HOT). We believe that the company's geographically diverse,
high-end portfolio is well positioned for the long-term.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded
stocks. Our analysts are organized by industry which gives them keen
insights to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.
Zacks Profit from the Pros e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Subscribe to this free
newsletter today by visiting http :// at.zacks,com /?id&79.
About Zacks
Zacks,com is a property of Zacks Investment Research, Inc., which was formed
in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find
patterns in stock market data that would lead to superior investment
results. Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues to
outperform the market by nearly a 3 to 1 margin. The best way to unlock the
profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros.
In short, it's your steady flow of Profitable ideas GUARANTEED to be worth
your time! Register for your free subscription to Profit from the Pros at
http :// at.zacks,com /?idE81.
Visit http :// www .zacks,com /performance for information about the performance
numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors
should always research companies and securities before making any
investments. Nothing herein should be construed as an offer or solicitation
to buy or sell any security.
