Carnival Corp. hopes to keep topping forecasts, releases third quarter results Tuesday morning

Earnings Preview: Carnival Corp.

CHICAGO — Cruise line company Carnival Corp. reports results for its third quarter on Tuesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Cruise company Carnival Corp. has worked to cut costs as the recession continues, but its massive discounts have enticed travelers to leave dry land and seem to have benefited the company. It beat forecasts for the second quarter despite rising fuel costs and the worldwide outbreak of swine flu rattling travelers.

During the third quarter, the Miami-based company said a group of major shareholders would sell 8.5 million shares for tax planning, estate planning and diversification purposes. The shares are part of the massive 28 percent stake in the company owned by Chairman and CEO Micky Arison and his family, who hold a combined 220 million shares.

Also during the period, communications and technology company Harris Corp. said it signed a multiyear deal with the cruise company to provide satellite telephone, data and Internet service for passengers on the company’s Costa Cruises brand tours.

In addition to Costa, the company operates Carnival and Princess cruises, the Holland America Line and other cruise lines around the globe.

BY THE NUMBERS: Analysts polled by Thomson Reuters predict a profit of $1.18 per share on revenue of $4.05 billion for the quarter. In the third quarter last year, the company earned $1.33 billion, or $1.65 per share, on revenue of $4.8 billion.

ANALYST TAKE: Stifel Nicolaus & Co. Steven Wieczynski said in a research note to investors that he wouldn’t be surprised if the cruise line exceeded expectations because it had carefully controlled its expenses.

WHAT’S AHEAD: Analysts will be looking for an update on how the Swine Flu is expected to affect the company’s business this fall and winter.

STOCK PERFORMANCE: During the quarter, which began June 1, shares rose about 15 percent to end the period at $29.25. Shares closed Friday at $32.26 above the midpoint in their 52-week range of $14.85 to $42.39.