CUK Carnival Plc

By Tess Stynes 

Carnival Corp. raised its earnings guidance as the cruise-ship operator reported that its profit rose 17% in the latest quarter.

The Miami-based company's per-share earnings, excluding certain items, and revenue beat expectations.

For the fiscal year ending in November, Carnival raised its per-share earnings estimate to $3.33 to $3.37, compared with its previous view for a per-share profit of $3.25 to $3.35.

For the current quarter, the company forecast per-share earnings of 55 cents to 59 cents. Analysts polled by Thomson Reuters expected per-share profit of 58 cents.

Carnival, which is dual-listed in the U.S. and the U.K., has benefited in recent quarters from low fuel prices, higher prices and strong bookings.

While concerns that Zika could hurt tourism have weighed on the travel sector in recent months, Carnival didn't mention any impacts from the mosquito-borne disease in its press release Monday.

The company, which operates Carnival Cruise Lines as well as the Princess, Cunard and Holland America lines, said bookings for the first half of next year are running higher than the year-earlier period at considerably higher prices. Meanwhile, booking volume since June is lower because there is less inventory available, Carnival stated.

Chief Executive Arnold Donald said in prepared remarks said revenue for the peak summer season was bolstered by strong performances from its North American and European brands and across its major venues including the Caribbean, Alaska and Europe.

For the period ended Aug. 31, Carnival reported a profit of $1.42 billion, or $1.93 a share, up from $1.22 billion, or $1.56 a share, a year earlier. Excluding fuel-hedging effects and other items, per-share earnings rose to $1.92 from $1.75. The company had projected adjusted per-share profit of $1.83 to $1.87.

Revenue increased 4.4% to $5.1 billion. Analysts expected revenue of $5.07 billion.

Excluding currency effects, net revenue yields rose 2.7%, near the higher end of expectations for growth of 2% to 3%.

Write to Tess Stynes at tess.stynes@wsj.com

(END) Dow Jones Newswires

September 26, 2016 10:33 ET (14:33 GMT)

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