Carnival’s Earnings Beat Estimates as Sales Rise, Costs Fall

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September 26, 2016 9:51am NYSE:CCL

Cruise ship operator Carnival Corp (NYSE:CCL) this morning posted better-than-expected Q3 earnings results and offered an in-line Q4 outlook, as higher sales and lower fuel costs benefitted its bottom line.


The Doral, FL-based company reported Q3 EPS of $1.92, beating Wall Street estimates of $1.89. Revenue rose 4.4% from last year to $5.1 billion, also beating analysts’ view of $5.07 billion.

Looking ahead, CCL forecast Q4 earnings to range from $0.55 to $0.59 per share, which straddles Wall Street’s outlook of $0.58 per share for the period.

Other interesting notes from the report included:

  • Gross revenue yields (revenue per available lower berth day or “ALBD”) rose 0.6%. Net revenue yields on a constant currency basis gained 2.7% vs. guidance of 2% to 3%.
  • Gross cruise costs including fuel per ALBD fell 0.2%, but net cruise costs excluding fuel per ALBD on a constant currency basis rose 5.5%. Still, those costs were lower than June guidance of up 6% to 7% higher prices.
  • Changes in fuel prices (including realized fuel derivatives) and changes in currency exchange rates boosted earnings results by $0.02 per share.

From the press release:

Carnival Corporation & plc President and Chief Executive Officer Arnold Donald noted, “We delivered the strongest quarterly earnings in our company’s history affirming our ongoing efforts to expand consumer demand in excess of measured capacity increases and leverage our industry leading scale. Revenues during the peak summer season were bolstered by strong performances from both our North American and European brands and across all major deployments including the Caribbean, Alaska and Europe,” Donald added.

CCL-2016-09-26

So far today, investors are exhibited a muted reaction to CCL’s latest report. Carnival shares were mostly flat in Monday morning trading at $47.27. Year-to-date, CCL has fallen 12.63%, versus a 5.26% gain in the benchmark S&P 500 during the same period.


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