Carnival Corporation (NYSE:CCL, LON:CCL) announced second-quarter earnings early Monday, sailing past Wall Street estimates for earnings and revenue.
The cruise ship operator reported earnings of US$0.68 per share on revenue of US$4.4bn compared with US$ 0.52 EPS on revenue of US$3.94bn in the previous year’s second quarter.
The Florida-based company beat Wall Street estimates of US$0.60 EPS on revenue of US$4.32bn.
For the third quarter, the company expects adjusted earnings per share to be in the range of US$2.25 to US$2.29 compared with the prior year’s adjusted EPS of $2.29.
Looking ahead to the full year, Carnival slashed its earnings forecast to adjusted earnings between US$4.15 to US$4.25 from its previous guidance in the range of US$4.20 and US$4.40. The forecast falls below consensus estimates of US$4.36.
“Strong operational execution drove a 30 percent increase in adjusted earnings affirming the strength of our core strategy to create demand that outpaces measured capacity growth through outstanding guest experience efforts coupled with innovative actions to increase consideration for cruising across all global markets," said CEO Arnold Donald in a press statement.
Carnival Cruise Line operates 25 ships and served 4.7 million guests in 2016.
Its latest ship, Carnival Horizon, which was christened by Grammy Award-winning rapper and actress Queen Latifah, features an onboard brewery, a water park, an IMAX theatre and SkyRide, a suspended open-air cycling experience.
Its brand portfolio also includes Princess Cruises, Holland America Line, Seabourn, Cunard, AIDA Cruises, Costa Cruises, P&O Cruises and Fathom, operating approximately 100 cruise ships in total.
Ships travel to the Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Canada, New England, Europe, Cuba, Australian, New Zealand and the Pacific Islands.
Shares of the cruise company were down more than 9% to US$57.80 in Monday morning trading. Shares on the London Stock Exchange also fell around 9% to 4,327p.
--Updated to include forecast and latest share price
Contact Lenore Fedow at lenore@proactiveinvestors.com
Follow her on Twitter: @LenoreMariee