What keeps Carnival execs awake on the high seas?


Earnings season is always an interesting time for corporations because it gives them a chance not only to look back to see how well they performed, but also to look forward to see what lies ahead.

Today, Carnival Corporation (NYSE: CCL) announced that the company made $1.33 per share during its third quarter, which was much higher than analyst expectations of $1.18.

Okay, so Carnival Corporation had a good quarter last quarter, but what are executives worried about for the future?
According to the company's earnings press release, management list the following as risks that may affect the performance of the company in the future:

- Fuel price increases due to implementing approved International Maritime Organization regulations, which require the use of higher priced low sulfur fuels in certain cruising areas

- Declining security and real estate values leading potential customers to feel they can't afford to take a cruise this year

- Struggling land-based vacation resorts and destinations offering discount packages to fill excess capacity

- The U.S. dollar strengthening against the euro and the British pound

- The threat of pirate attacks

So keep you eye on these factors. If you see a major shift in any one of them, you may be able to make a move on the stock ahead of its next earnings announcement.


Wade Hansen is an analyst for Learning Markets.

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