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Carnival gently raises earnings guidance on strong bookings, pricing

Carnival Corporation & plc, the Anglo-American cruise shipping group, said bookings run ahead of the level seen last year at this time at prices that are also higher, which has led it to increase its earnings per share (EPS) guidance for the financial year to 30 November 2017

The company now expects full year 2017 adjusted earnings per share to be in the range of $3.60 to $3.70 compared to March guidance of $3.50 to $3.70 and 2016 adjusted earnings per share of $3.45.

“At this time, cumulative bookings for the next three quarters are higher at prices that are well ahead of the prior year. During the quarter, booking volumes for the next three quarters have been running in line with last year, also at prices that are well ahead,” the company said.

 Looking forward, Arnold Donald, President and CEO commented: “We are realizing sustained strength in booking trends across all core products. We are delivering on our strategy to grow demand in excess of measured capacity growth while leveraging our industry-leading scale resulting in increased return on invested capital. We are working hard to sustain the momentum.”

“We have accelerated returns to shareholders through our recent dividend increase, with annual dividend distributions now approaching $1.2 billion, and the reauthorisation of up to $1 billion in share repurchases.” Donald added that the company has completed $2.7 billion in share repurchases since late 2015.

Carnival group expects full year 2017 net revenue yields in constant currency to be up approximately 3.5 % compared to the prior year, better than March guidance of up approximately 3.0%.

The company expects full year net cruise costs excluding fuel per ALBD in constant currency to be up approximately 1.5% compared to March guidance of up approximately 1.0%.

Changes in fuel prices (including realised fuel derivatives) and currency exchange rates compared to the prior year are expected to decrease earnings by $0.35 per share.