Carnival Results Improve, but Cruise Operator Warns of Fuel-Price Increase
December 20 2016 - 11:08AM
Dow Jones News
By Austen Hufford
Cruise operator Carnival Corp. posted higher revenue and profit
in its fourth quarter but said low fuel prices, which have boosted
results of late, likely would increase in the coming year.
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. It said higher fuel prices for the next year
would raise its fuel expenses by $200 million.
Shares rose 1.9% in morning trading.
For the fiscal year ending next November, the Miami-based
company expects adjusted earnings per share at $3.30 to $3.60.
Analysts had expected $3.69.
The company cited the "unusual and significant impact of fuel
and currency working against us simultaneously."
It expects the higher fuel costs to take 27 cents a share off
its earnings and currency rates to shave off 16 cents a share.
For the current quarter, the company forecast per-share earnings
of 31 to 35 cents. Analysts polled by Thomson Reuters expect
per-share profit of 41 cents.
The company, which operates Carnival Cruise Lines as well as the
Princess, Cunard and Holland America lines, said bookings for the
first three quarter of 2017 are running higher than the
year-earlier period at higher prices.
For the period ended Nov. 30, Carnival reported a profit of $609
million, or 83 cents a share, up from $270 million, or 35 cents a
share, a year earlier. Excluding fuel-hedging effects and other
items, per-share earnings rose to 67 cents from 50 cents. Analysts
expected earnings of 58 cents a share.
Revenue increased 6% to $3.94 billion.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 20, 2016 10:53 ET (15:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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