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Carnival slightly raises floor of full year earnings guidance

Carnival Corporation & plc, the world’s largest cruise shipping grpup, has increased the floor of its earnings guidance for the financial year to 30 November from that it gave three months ago.

Based on the third quarter results and booking strength for the fourth quarter of 2018, the company now expects full year 2018 net revenue yields in constant currency to be up approximately 3.5% compared to the prior year, better than June guidance of up approximately 3.0%, the company said in a statement.

The company expects full year net cruise costs excluding fuel per ALBD in constant currency compared to the prior year to be up approximately 1.5%, versus June guidance of approximately 1.0%, primarily due to the accounting treatment for ships sold during the quarter.

Changes in fuel prices (including realised fuel derivatives) and currency exchange rates are expected to decrease earnings by $0.06 per share compared to June guidance and $0.18 per share compared to the prior year.

Taking the above factors into consideration, the company expects full year 2018 adjusted earnings per share to be in the range of $4.21 to $4.25 compared to 2017 adjusted earnings per share of $3.82.

This marks a slight increase of the floor of the guidance from June, when the company said it expects full year 2018 adjusted earnings per share to be in the range of $4.15 to $4.25

President and Chief Executive Officer Arnold Donald commented: "We are on track to achieve double digit return on invested capital in 2018 as we deliver upon our strategy to create demand in excess of measured capacity growth, all while containing costs and leveraging our industry leading scale. Going forward, we remain on a path toward continued growth in earnings and returns, driven to a greater degree by capacity increases as we add more efficient ships, replacing less efficient capacity. “

“We believe the plans we have put in place will maximize returns to shareholders over time as we continue to execute in an industry that is both under-penetrated and capacity constrained."

Donald added: "At the same time, we remain committed to returning cash to shareholders as evidenced by the growth in our recurring dividend, currently distributing $1.4 billion annually, accompanied by our recently replenished share repurchase program."



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