Carnival Corp. (LON:CCL) (NYSE:CCL) saw its shares rise today after the cruises operator reported above-forecast third quarter earnings and revenue, as it detailed expectations for a fourth quarter EPS hit from the recent Caribbean hurricanes and Mexican earthquake.
The firm - dual-listed in both New York and London - reported net income for the quarter of US$1.33bn, or US$1.83 per share, down from US$1.42bn, or US$1.93 per share at the same stage a year earlier, while adjusted EPS of US$2.29, beat the US$2.20 consensus estimate.
READ: Carnival Corp reports first quarter earnings decline but raises full year guidance
The firm said its third quarter revenue totalled US$5.52bn, up from US$5.1bn a year earlier and ahead of the consensus forecasts for US$5.39bn.
Carnival said changes in fuel prices and currency exchange rates lowered its earnings by 3 US cents per share, while non-cash impairment charges of US$392mln reflected a business realignment in Australia.
The group said temporary port closures associated with the recent hurricanes that have battered the Caribbean and the US are expected to result in a 10 to 12 US cents reduction in its EPS in the fourth quarter.
It added that adjusted EPS for the fourth quarter is expected to be in the range of 44 US cents to 50 US cents, well below the current consensus for 63 UScents.
Destinations “fully operational and welcoming guests”
In a statement, referring to the recent earthquakes in Mexico as well as the hurricanes, Arnold Donald, Carnival’s chief executive said: "[O]ur owned destinations including Amber Cove, Dominican Republic; Cozumel, Mexico; Mahogany Bay, Honduras; Half Moon Cay and Princess Cays, Bahamas, as well as more than 40 other ports, plus all those in Mexico, are fully operational and welcoming guests.”
In reaction, Carnival shares were up 4.2% in New York to US$66.15, and ahead 2.7% in London to 4,867p.