News Column

Carnival Profit More Than Doubles, Lifts Earnings Guidance

June 24, 2014

PANAMA (Alliance News) - Cruise operator Carnival Corp. & PLC reported that its second-quarter GAAP net income significantly increased to USD106 million or USD0.14 per share from USD41 million or USD0.05 per share in the same quarter last year.

The latest-quarter result included a net gain on vessel transactions of USD15 million and net unrealized gains on fuel derivatives of USD11 million. The prior year result included a gain on a ship sale of USD15 million and unrealized losses on fuel derivatives of USD31 million.

Quarterly non-GAAP net income rose to USD80 million, or USD0.10 per share from USD57 million or USD0.07 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of USD0.02 per share for the quarter. Analysts' estimates typically exclude special items.

The company President and CEO Arnold Donald noted that second quarter earnings were significantly better than anticipated in the company's March guidance due to better than expected net revenue yields for most of the company's cruise brands, as well as lower than expected net cruise costs.

Revenues for the second grew to USD3.63 billion, from USD3.48 billion the prior year. Wall Street analysts had a consensus revenue estimate of USD3.61 billion.

The company expects non-GAAP earnings for the third quarter 2014 to be in the range of USD1.38 to USD1.44 per share versus 2013 non-GAAP earnings of USD1.38 per share. Analysts project third-quarter earnings of USD1.51 per share.

Third quarter constant dollar net revenue yields are expected to be flat to down 1% compared to the prior year due primarily to a significant industry capacity increase in the Caribbean. Net cruise costs excluding fuel per ALBD for the third quarter are expected to be 1 to 2% higher on a constant dollar basis compared to the prior year.

The company raised its full year 2014 non-GAAP earnings per share guidance to a range of USD1.60 to USD1.75. Analysts project annual earnings per share of USD1.72. The company said in March that it expected annual adjusted earnings in a range of USD1.50 to USD1.70 per share.

Total revenues are expected to be higher for the full year 2014 compared to the prior year. The company continues to expect full year 2014 net revenue yields on a constant dollar basis to be down slightly compared to the prior year (flat to up slightly on a current dollar basis).

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Source: Alliance News

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