Carnival interims, earnings upgrade, fail to fire up investors

Shares in the two listed holding companies of the Carnival group remained firmly in the red after the group had reported a slight fall in third quarter interims, but raised its financial year 2015 earnings forecast.

Soon after 1000am local time in New York, shares in the Panama domiciled and US listed Carnival Corporation traded 2.28% lower from the opening at $51.48. At the same time, shares in Carnival plc, which is the British holding company of the group, had lost 1.60% to trade at £34.50.

 

Carnival raises 2015 net yield rise forecast and increases earnings guidance

Carnival Corp & plc, the Anglo-American cruise shipping giant, says it has raised its net yield increase forecast and consequently guidance for its full financial year 2015 earnings forecast as well.

"Based on the strength in third quarter net revenue yields and current booking trends, the company has increased its expectations for full year 2015 net revenue yields. The company now expects revenue yields to be up approximately 4% compared to the prior year versus previous guidance of up 3% to 4% on a constant currency basis, which excludes translational and transactional currency impacts (up approximately 3% on a constant dollar basis)," Carnival said in a statement.

The company maintained full year 2015 net cruise costs excluding fuel per ALBD (available lower bed day) forecast at a rise of approximately 3.5% compared to the prior year on a constant currency basis (up approximately 3%on a constant dollar basis).

"Taking the above factors into consideration, the company has increased its full year 2015 non- GAAP diluted earnings per share guidance to be in the range of $2.56 to $2.60, better than both the June guidance range of $2.35 to $2.50 and 2014 non-GAAP diluted earnings of $1.93 per share," Carnival said.

Carnival sees 35% earnings rise in 2015, booking curve lengthens

Carnival Corporation & plc, the world's largest cruise shipping group, says it expects to achieve an almost 35% earnings rise this financial year as booking curve has lengthened and unsold inventory decreased from a year ago

"In 2015, we are on track to achieve a nearly 35% earnings improvement and we are accelerating progress toward achieving double digit return on invested capital in the next three to four years. Our improved performance has driven even stronger operating cash, which is expected to exceed $4 billion this year. We remain committed to further enhancing shareholder returns as demonstrated by our recent 20% increase in quarterly dividends," Carnival Corporation & plc President and Chief Executive Officer Arnold Donald said in a statement

“Looking forward to 2016, we have driven a significant lengthening of the booking curve and have less inventory remaining for the first half of 2016 than at this time last year, which bodes well for continued year-over-year revenue yield improvement. Although we already have a solid base of business for next year, we are working hard to maintain the momentum through our ongoing initiatives to create additional demand," Donald said.

Carnival Corp & plc third quarter revenues, net profit edge lower

Carnival Corporation & plc, the Anglo-American cruise shipping group, has reported a slight fall in both revenues and net profit for three months to 31 August. Carnival's financial year ends on 30 November.

Group net profit fell to $1.21 billion in the third quarter of the current financial year from a profit of $1.24 billion in the same period last year. The fresh figure includes an unrealised bunker derivative loss of $137 million, up from $15 million a year earlier. Revenues fell to $4.88 billion from $4.94 billion.

For the first nine months of its financial year, the group however reported a rise in net orofit to $1.48 billion from $1.32 billion, while revenues decreased to $12.0 billion from $12.1 billion.

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, “Our third quarter non-GAAP performance was the strongest of any quarter on record with earnings $0.17 per share higher than the prior year despite a slight drag from the net impact of fuel prices and currency. Non-GAAP earnings for the quarter were also $0.17 higher than the mid-point of prior guidance."

"Net revenue yields improved 5 percent (constant currency) from the prior year benefiting from strong demand which led to higher occupancy levels, increased ticket prices and increased onboard spending. Clearly our ongoing investments in the guest experience, combined with our global marketing and public relations efforts along with our initiatives to leverage our scale are having a positive impact," he said in a statement.

Carnival Corp & plc to publish third quarter interims 22 September

Carnival Corporation & plc, the world's largest cruise shipping company, says it will publish interims of the third quarter of its financial year on Tuesday, 22 September at 1000 ET / 1500BST. The financial year of the Anglo-American company runs to 30 November.