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Carnival Corp. reports first quarter earnings decline but raises full year guidance
Cruise operator Carnival Corp. (NYSE:CCL) (LON:CCL) has raised its full year earnings guidance as it said advance bookings are “well ahead” of the previous year at higher prices.
The company has forecast adjusted earnings per share (EPS) for fiscal year 2017 to be in the range of US$3.50 to US$3.70, compared to US$3.45 in 2016, with net revenue yields rising 3%.
Net cruise costs, excluding fuel, are expected to rise 1.0% but cumulative advance bookings for the remainder of 2017 are ahead of the prior year at “considerably” higher prices, Carnival said.
Carnival provided its full year guidance as it reported a decline in first quarter EPS to US$0.48 from $0.18 the same period a year ago, reflecting an increase in fuel costs and currency headwinds.
Excluding fuel, net cruise costs rose 3.2%, more than the 1.5% to 2.5% gain expected, due to the timing of certain expenses.
Still, net revenue yields in the three months ended 28 February 2017 rose 3.8%, beating the company’s estimated range of 1.5% to 2.5%.
“We are off to a good start delivering another quarter of operational improvement on top of a very strong first quarter last year,” said chief executive Arnold Donald.
“Our performance was driven by increased demand, particularly for our core Caribbean itineraries, leading to higher year-over-year ticket prices which enabled us to overcome the significant negative impact of both fuel and currency to exceed the high end of our guidance range.”
Carnival’s US shares rose 1.55% to US$59.72 while its London shares increased 1.75% to 4,577.0p.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175553/carnival-corp-reports-first-quarter-earnings-decline-but-raises-full-year-guidance-175553.html
