Plato Learning (TUTR), a leading provider of computer-based and e-learning instruction for kindergarten, reported results for the third quarter with earnings of 1 cent per share. Earnings were better than the Zacks Consensus Estimate of a net loss of 1 cent, and a net loss of 9 cents per share in the prior-year quarter. The positive earnings surprise in the quarter was primarily driven by strong subscription revenue growth and lower operating costs. Despite a 16.5% increase in subscription revenues, net revenues declined 10.2% year-over-year to $16.7 million. The decline was due to the continuing decrease in license fees from legacy perpetual products. Further, the transition to recurring revenue subscription products also led to the contraction of the top-line. The gross margin expanded to 57.4% versus 50.0% in the comparable prior-year period attributable to the increase in subscription margins. The third quarter period is ...

We maintain our Hold rating for Carnival Corporation (CCL) and Carnival Plc (CUK) following the release of Q3 financial results. We expect Carnival to continue to trade at a premium to its largest competitor over the near-term. As a single economic entity, Carnival Corporation & Carnival Plc is the largest cruise operator in the world.

However, given our expectation for continuing margin pressures, especially related to significantly higher fuel expenses, we do not feel that material price appreciation is warranted at this time. While the recent pullback in the price of fuel should provide some relief, we note that costs remain significantly higher on a year-over-year basis.

Carnival has historically traded at a premium to Royal Caribbean (RCL), based on forward price-to-earnings multiples. This relationship still holds, based on current prices and our forward twelve-month EPS estimates for both companies. While Carnival Corporation is trading at 14.0x estimated

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