Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Carnival reports beat on 3Q earnings per share and revenue but stock retreats on higher fuel costs

Higher fuel costs and fluctuations in currency rates will keep the company on the defensive
cruise ship
Carnival Corp is a cruise ship company

Carnival Corp (NYSE:CCL) reported on Thursday a beat in earnings per share and revenue, but company shares fell because of higher fuel costs and currency rate fluctuations which are expected to push earnings lower in the months ahead.

Third quarter earnings per share was at $2.41, above the year-ago level of $2.29 and the consensus expectation of $2.32. Revenue reached $5.84 billion, topping last year's $5.51 billion and the consensus estimate of $5.81 billion.

Changes in fuel prices (including realized 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, a company statement said.

READ: Carnival Corp cruises past Wall Street estimates but shares sink on guidance

Shares of Carnival declined 5.6% to $63.21 by midsession on Thursday.

"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," said Carnival president and CEO Arnold David.

But the company guided fourth quarter EPS of US$0.65 to US$0.69, which fell short of the market consensus it will reach $0.73.

Prices of the benchmark Brent crude had been trading at their highest level in four years and the US dollar has risen almost 3% this year.

Carnival is one of the world's leading cruise lines. The company is based in Miami, Florida.

 

View full CCL profile View Profile

Carnival Corporation Timeline

Newswire
September 25 2012

Related Articles

Ryanair plane
August 23 2018
Two new directors have been appointed, though the group is still looking for a replacement for chairman Iain Ferguson
credit cards
July 08 2018
The group is already seeing good progress at its US contact centre business
The river Thames
June 08 2018
No longer focused so much on drone technology, the high-tech survey and inspection specialist is so changed that it probably should change its name but management would rather spend the money growing the business

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use