Carnival Boosts Guidance as Profit Rises 17%
September 26 2016 - 11:00AM
Dow Jones News
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 10:45 ET (14:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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