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3 Large Caps Release Quarterly Financial Results

- By Alberto Abaterusso

Three large caps released quarterly earnings results before the opening bell on Tuesday.

Shares of Carnival Corp. (CCL) tumbled 8.72% to $51.71 on March 26 after setting disappointing guidance due to fuel prices and currency exchanges.

The Miami, Florida-based cruise line operator expects second-quarter non-GAAP earnings per share to range between 56 and 60 cents while consensus estimates are for 72 cents per share.


Non-GAAP earnings per share are expected to fall within a range of $4.35 to $4.55 versus consensus estimates for $4.78.

Carnival Corp. beat consensus estimates on non-GAAP earnings for the first quarter of 2019 by 5 cents, having posted 49 cents per share or a 5.8% decrease from the prior-year quarter.

GAAP earnings were 48 cents per share or an 11.1% fall from the same quarter of 2018.

Earnings were from revenue of $4.67 billion, which was 10.4% growth year-over-year, beating consensus estimates by $360 million.

The company also recorded a 5.8% jump in the gross revenue yields, an 8.6% increase in the gross cruise costs and a 3 cent-per-share negative impact on earnings due to unfavorable fuel prices and currency exchanges.

After Tuesday's fall, shares of Carnival Corp. are more compelling as the share price is below the 200-, 100- and 50-day simple moving average lines. The share price at close on Tuesday is also 13.3% above the 52-week low of $45.64 and 31% below the 52-week high of $67.69. The market capitalization is about $37.17 billion. For the past year through March 26 the share price fell 20%.

The forward dividend yield is 3.53% versus the S&P 500 index's dividend yield of 1.91% as of Tuesday.

Wall Street issued an overweight recommendation rating with an average target price of $65.75 per share of Carnival Corp. Analysts predict that the stock will outperform either the industry or the overall market.

Shares of IHS Markit Ltd. (INFO), the London-based global economic information provider, fell 1.97% to $53.27 on March 26 after reporting mixed results for the first quarter of 2019.

With 60 cents per share, IHS Markit beat consensus estimates on non-GAAP earnings by 3 cents. Non-GAAP earnings per share increased 13% year-over-year while GAAP earnings of 27 cents per share fell sharply 54% compared to the prior-year quarter.

Earnings were produced from revenue of $1.05 billion. or 12.6% higher, missing consensus estimates by $10 million.

For full year 2019, IHS Markit Ltd. forecast earnings per share would fall within $2.52 to $2.57 range on revenue between $4.425 billion and $4.5 billion.

The share price of the stock increased 11% for the 52 weeks through March 26 and is now significantly above the 100-day simple moving average line, off the 200-day SMA line and slightly over the 50-day SMA line. The share price at close Tuesday was 6% off the midst of the 52-week range of $44.52 to $55.99. Thus, the stock is not trading cheaply. The market capitalization is roughly $21.28 billion.

The company is not paying a dividend.

Wall Street issued an overweight recommendation rating meaning the stock is foreseen to outperform either the industry or the overall market with an average target price of $59.38 per share of IHS Markit Ltd.

Despite mixed results for the second quarter of fiscal 2019, shares of FactSet Research Systems Inc. (FDS) soared 5.45% to $246.30 on Tuesday.

The Norwalk, Connecticut-based financial data and software company released non-GAAP earnings per share of $2.42, beating consensus estimates by 8 cents on revenue of $354.9 million, or 5.9% higher, beating consensus estimates by $1.56 million.

Non-GAAP earnings increased 14.15% and GAAP earnings of $2.19 per share grew 64.7% thanks to strong operations. Amid most important numbers, Annual subscription value and professional services grew 6% excluding one-time items and foreign currency rates, and the operating margin jumped 1.8 percentage points to 33.2%. Also, the client count grew by 100 to 5,405, the user count increased to 122,063 by 6,854 both compared to prior trimester, and annual client retention was 91% of total clients and more than 95% of annual subscription value.

Despite an 84.6% increase in the capital expenditures as a result of spending for the building of new offices and tech upgrades, the free cash flow was $87.3 million or 1.4% higher thanks to strong result for operating cash flow totaling $99.2 million in the quarter.

For full fiscal 2019, the company expects GAAP revenues of $1.41 billion to $1.45 billion versus consensus estimates for $1.43 billion, and non-GAAP earnings per share to fall within a $9.50 and $9.65 range or 12% higher than the prior year, versus expectations of $9.55.

Following a 24% increase for the past year through March 26 the share price is now substantially above the 200-, 100- and 50-day simple moving average lines, and 14.2% beyond the midst of the 52-week range of $184.48 to $246.76. The market capitalization is roughly $9.4 billion.

FactSet Research Systems is paying a cash quarterly dividend per share of 64 cents for a forward dividend yield of 1.1% versus the S&P 500 dividend yield of 1.91% as of Tuesday.

Wall Street issued a hold recommendation rating with an average target price of $218.23 per share of FactSet Research Systems.

Disclosure: I have no positions in any securities mentioned.

This article first appeared on GuruFocus.